US Oil Price Crashing to -$37.63/Barrel: What this Negative Price Means – Chidi Cali

0
439

Yesterday’s trading saw the price of US oil turning negative for the first time in history. It ended at Negative $37.63 a barrel.

This development means that oil producers are paying buyers to take the commodity off their hands. The producers concern or fear is that their storage capacity could not take in more products by May, 2020.

The global lockdown has driven down the demand for oil as people are stocked inside and businesses on the halt.
Therefore, US Oil producers have resorted to renting tankers to store the surplus supply (more cost) and this literally forced the price of oil into negative territory.
Looking at from another angle, I felt that what they were pricing yesterday was the indirect cost of storing the excess crude produced not the crude itself that have zero demand.

LOCAL Solution: The Nigerian Govt should allow small businesses in Niger Delta to set up Modular Refineries to use the “unwanted” produced Crude oil to refine Products. Sales tax will be coming out of this and jobs to Nigerians, while we wait for any improvement in the global price.

READ ALSO
We’ll Work For Peter Obi’s Emergence As President – NLC, TUC

The Nigeria Labour Congress (NLC) and the Trade Union Congress of Nigeria (TUC) have pledged to support, campaign and do Read more

Wife Pays Assassin N7000 To Kill Her Husband In Yola

A Housewife has been arrested for hiring a man to assassinate her husband in Yola. The woman, Hauwa Audu, a Read more

Section 84(12): Supreme Court Strikes Out Buhari, Malami’s Suit On Electoral Act

The Supreme Court has struck out the suit by President Muhammadu Buhari and the Attorney General of the Federation (AGF), Read more

Adeboye’s RCCG Launches ‘Operation Show Your PVC’ In Provinces

The General Overseer of the Redeemed Christian Church of God (RCCG), Pastor Enoch Adeboye, has directed all the provinces of Read more

ADVERISE HERE