How did we end up with negative oil prices today?
That's difficult to believe that the price of any commodity, let alone oil, can end up with negative numbers! What really happened with oil and oil price?
The Covid crises has also affected the global oil demand by about 29 million barrels a day from about 100 million a year ago. OPEC and other producers agreed to cut production by 9.7 million barrels a day, far less than the decrease in demand, leaving a huge surplus of oil on the market and no buyers.
As their is no oil demand due to lock down in many country, we found no buyers for oil. Ultimately this affected the oil price! Some oil producers are maintaining their share, and taken to storing their access at sea, leasing tankers at high costs.
Since the start of the year, Oil prices have plunged after the compounding impacts of the corona virus and a breakdown. United States production also directly affects the price of oil. With so much oversupply in the industry, a decline in production decreases overall supply and increases prices. As of 2019, the U.S. has an average daily production level of 12 million barrels of oil.
As per experts the Oil prices will come back as
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