Collapse of crude oil prices

[Jaspion]

It is quite predictable due to Global lockdowns caused by this pandemic. The demand is low but after this crisis I believe that it would go back to its normal phase. Slowly but surely.

Will it go back tho?
People's habits have been changed during lockdown, companies have been damaged, some of them closed, other ones adapted to situation and started to work remotely.
But overall I believe this situation will push humanity to go away from oil

[BD Money365]

The absolute collapse of WTI prices is primarily owing to the expiry of May WTI contracts, alongside the significant demand destruction due to lockdowns in several countries and supply glut in oil markets. Put simply in other words, the sellers are paying the buyers. Oil traders are unwilling to take the delivery owing to lack of storage space.

[Naida_BR]

The absolute collapse of WTI prices is primarily owing to the expiry of May WTI contracts, alongside the significant demand destruction due to lockdowns in several countries and supply glut in oil markets. Put simply in other words, the sellers are paying the buyers. Oil traders are unwilling to take the delivery owing to lack of storage space.

Here is my country the oil price is still the same due to taxation.
I think that the same has happened in many other countries so we as consumers cannot see any significant drop in the oil price. Sales are not increased due to the oil price leading to a collapse in the whole market.

[brotherwood12]

i think the most cause of the price are the pandemic , the pandemic lead company to "stop" producing and that the cause they dont buy oil , and it happens to the most of company

[wozzek23]

It is really scary that it is already back at 25 dollars right now, I mean of course it was a fluke that it dropped so much, it was like 2 cents per liter of oil, that is really not something that could have been sustainable, it was peaked at 60 dollars this year so we all know it would have gone up however 25 bucks and this quickly really scared me.

I am not entirely sure if this increase is really because it should have gone up but more like there was too many talks of how oil is cheap so too many people bought. I am afraid people may see the increase and decide they did a right call and when it doesn't keep going up they will sell, because this is actually a lot of traders buying to make a profit, when there is no profit they will leave and price may down again.

[havoc928]

i think the most cause of the price are the pandemic , the pandemic lead company to "stop" producing and that the cause they dont buy oil , and it happens to the most of company

I am pretty sure with this growth of oil. When the whole world socially isolated in early March and April, the demand for gasoline has dropped sharply and so the price of oil also fell. Now it seems that in Asia the disease has been well controlled, so the demand for production and gasoline has also increased. I think it will hold around $ 23 - $ 27 for a long time before there is another big upside move.

[JoMarrah Iarim Dan]

Let's talk about the oil industry.
Crude oil prices are currently crashing to new lows, down 79% for the year and counting. The corona virus pandemic has completely destroyed global demand.

Companies that are using oil or npt less operates. Vehicles like buses and jeepneys are no where to be found on the street. Less demand for oil I think. Due to this crude oil price is crashing, I tell my mom to take advantage of it. I tell her to buy extra crude oil for our vehicle. In that case, they save money. But of course having this, we must be extra careful with this because it is dangerous and is prone in fire. Philippines are now suffering high heat index so it also be a cause of fire.

[BD Money365]

I think the Organization of Petroleum Exporting Countries, or OPEC is the main influencer of fluctuations in oil prices. OPEC is a consortium that, as of 2020, is made up of 13 countries: Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates, and Venezuela. According to 2018 statistics, OPEC controls almost 80% of the world's supply of oil reserves. The consortium sets production levels to meet global demand and can influence the price of oil and gas by increasing or decreasing production.
OPEC vowed to keep the price of oil above $100 a barrel for the foreseeable future, but in mid-2014, the price of oil began to tumble. It fell from a peak of above $100 a barrel to below $50 a barrel.3 OPEC was the major cause of cheap oil, as it refused to cut oil production, leading to the tumble in prices.

[shoreno]

Let's talk about the oil industry.
Crude oil prices are currently crashing to new lows, down 79% for the year and counting. The corona virus pandemic has completely destroyed global demand.

Companies that are using oil or npt less operates. Vehicles like buses and jeepneys are no where to be found on the street. Less demand for oil I think. Due to this crude oil price is crashing, I tell my mom to take advantage of it. I tell her to buy extra crude oil for our vehicle. In that case, they save money. But of course having this, we must be extra careful with this because it is dangerous and is prone in fire. Philippines are now suffering high heat index so it also be a cause of fire.

its now rainy season i believe so you should be fine   but still safety practice is a must because those stuffs are still highly flamable if expose with heat or simillar   .

  crued oil was expensive before , along time ago and people always protest its price to go down   .   im pretty sure that people also buy/invest now on it so that they can sell it or for later use    . it was like investing cryptos when they are on dump but this time we are talkin about oil   .

 

[Deeone09]

The downfall of the crude oil, will affected all this developing countries that base there economy on oil.

[verita1]

Massive cuts in US production will have an effect. The specialists are optimistic that when we overcome the crisis and the economy begins to recover, prices will increase due to demand.

[abhiseshakana]

I think the Organization of Petroleum Exporting Countries, or OPEC is the main influencer of fluctuations in oil prices. OPEC is a consortium that, as of 2020, is made up of 13 countries: Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates, and Venezuela. According to 2018 statistics, OPEC controls almost 80% of the world's supply of oil reserves. The consortium sets production levels to meet global demand and can influence the price of oil and gas by increasing or decreasing production.
OPEC vowed to keep the price of oil above $100 a barrel for the foreseeable future, but in mid-2014, the price of oil began to tumble. It fell from a peak of above $100 a barrel to below $50 a barrel.3 OPEC was the major cause of cheap oil, as it refused to cut oil production, leading to the tumble in prices.

In trading, there are terms "price takers" and "price makers". Price makers are big players (or big boys) in an industry, while price takers are those who follow the price set by the price maker.

OPEC is not a price maker, crude oil-producing countries that are members of OPEC are not price makers, even Saudi Arabia, which has the largest oil production, is also not a price maker. The price maker is the "market". But the market here is not purely based on supply and demand but there are institutions that play and corporations that control.

For the price maker oil is the US because the US has a deterrent effect. Although physically in the Middle East, America still dominates so that it becomes a price maker. This is not separated from the United States military power in the Middle East.

[Smitty Werben Man Jensen]

Massive cuts in US production will have an effect. The specialists are optimistic that when we overcome the crisis and the economy begins to recover, prices will increase due to demand.

it will certainly happen, if you invest in OIL, now is the right time, because this pandemic will definitely end, maybe 1 year,
after this is end, all activities return to normal, and oil becomes a necessity that must be met

[super bako]

I think the Organization of Petroleum Exporting Countries, or OPEC is the main influencer of fluctuations in oil prices. OPEC is a consortium that, as of 2020, is made up of 13 countries: Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates, and Venezuela. According to 2018 statistics, OPEC controls almost 80% of the world's supply of oil reserves. The consortium sets production levels to meet global demand and can influence the price of oil and gas by increasing or decreasing production.
OPEC vowed to keep the price of oil above $100 a barrel for the foreseeable future, but in mid-2014, the price of oil began to tumble. It fell from a peak of above $100 a barrel to below $50 a barrel.3 OPEC was the major cause of cheap oil, as it refused to cut oil production, leading to the tumble in prices.

Oil prices have been depressed this year, thanks to oversupply pressure on prices began to intensify when the Corona virus countermeasures shut down factories, closing borders disrupting travel and sending consumers back into lockdowns, destroying crude demand.
But the biggest massacre was launched in March after Saudi Arabia declared war on oil prices in retaliation for Russia refusing to support riyadh for reducing production in order to offset the blow from the corona virus.

[azmirihaque]

Crude oil is directly related to export. We, know, international trade is near to close. Countries have locked their border. Who will purchase now? Supply is available but market has a lack of buyers. There has a theory in Economics. If supply is greater than the demand, price falls for cuting off the extra supply.  That's why price is falling. If the present situation becomes worse, this decreasing trends will be continue....

[Zackgeno96]

Crude oil is directly related to export. We, know, international trade is near to close. Countries have locked their border. Who will purchase now? Supply is available but market has a lack of buyers. There has a theory in Economics. If supply is greater than the demand, price falls for cuting off the extra supply.  That's why price is falling. If the present situation becomes worse, this decreasing trends will be continue....

Yes and also there is no one purchasing the oil as economies around the world are closed due to the covid-19 spread and now the oil that is being manufactured is to be sold so as to unload their supplies the countries are trying to sell it cheaper to get rid of it faster and there was a time when the oil futures market was at a negative rate if I am not wrong, this was quiet a bit and shocking news for me to see this kind of a thing.

[Xxmodded]

Bitcoin look not interested in this year because with halving moment can break out bitcoin to higher price maybe when have other chance bitcoin keep lower price, will be the end of bitcoin era as investment assets, have to move our investment to business or try with gold and property as our investment at the future.

[STT]

I dont think the banks are caught up in oil business in the same way they were involved with mortgage debt in 2008 and most importantly using this debt as their tier 1 capital reserves, hence leaving them with nothing after taking losses.   The deal with commodity trading and business has been true for decades is wild swings and great risk but also profit to this sector, banks were never unaware of this like housing debt switched from most safe forming of saving to the most dangerous with sub prime meta etc.
   So we dont have that grand collapse, oil isn't the epicentre of this 'disaster' but a side story to the wider pullback required in economies so that people not business can be prioritised and kept alive.   It is unprecedented but possible this kind of failure is not quite the story of over 10 years ago, we can reverse the decline in economies as it was deliberate.

Also I have to keep saying but its completely obvious that cheap oil and energy is a benefit to us all in general.   We wont be poorer as a nation as people who must perform work and survive from 'suffering' this cheap oil, we should all be thankful and hope that it continues.   In the northern hemisphere that energy can be used for aircon cooling, but generally we wont need as much oil until winter comes back and also the full economic consumption of a working population.   Theres sunlight behind these clouds, I'm not so gloomy long term on these problems as such.   Plus dont forget Bitcoin does use quite a bit of energy in processing, now cheaper.

[billykannithi]

I think the sharp drop in oil prices aside from Covid-19 was also due to the US-China trade war. The US Pettro dollar is falling because Russia has implemented oil price reduction policies along with Iran

[snipie]

I think the sharp drop in oil prices aside from Covid-19 was also due to the US-China trade war. The US Pettro dollar is falling because Russia has implemented oil price reduction policies along with Iran

Trade war between China and Russia doesn't affect the oil price, Russia and Iran would like to see oil price +$100 or even more, any drop under $50-60 is a pure loss for their economy. And yeah, covid-19 reduced the use of oil badly in the world due to confinement (planes, cars, buses...) in addition to the excess of production which is Saudi's faults then the result was chaotic!