The drying oil

[Latviand]

But, why is the price be looking like this? It is not only the cars that uses oil, we also have a lot of machines that isn't running without the oil

Because cars are the biggest consumers oil and i know you know that. So lockdowns across the Globe means less demand. On top of all the crisis Russia and Saudi Arabia did something unusual after their stupid disagreements and decided to flood the market with excess oil.

You are also forgetting that more and more people are switching to Greener and renewable alternatives of Energy like Electric cars. Look at the trend of the graph, the price of oil may never achieve a new all-time high again

For now I think there's no effect for switching on renewable energy since actually electric cars globally spread since most of the car guys are still using a oil operated cars and the major cause that contributes for the current price dried up of the oil are the current lock downs happening on the world since if there are no demand coming starting from big factories to the lowest sector who use it well provably we can see more of this things coming.

And for continuously extending up the lock downs of countries affected for sure we can see more price decreased and this could hurt the oil industry badly.

What is really happening in the price of crude oil??? There are a lot of things here in our world that is utilized by using oil, but somehow there are technologies that are powered by solar rays. Innovation is really helping people overcome non-renewable source related problem. I don't think that the virus really contributed to this downward movement in oil's price into zero. I believe that there are still people or industries that uses oil in their activities or work to make their products and supplies. This lockdown really make people having no work e household still uses oil just to cook food but people have no money to spend because of the quarantine. Economy have no thing to do but to deal with these changes in price.

[drlukacs]

Okay we get it, less cars, less vehicles traveling so the oil is not that what we really need right now

But, why is the price be looking like this? It is not only the cars that uses oil, we also have a lot of machines that isn't running without the oil

Don't tell me the covid-19 global pandemic cases is inversely proportional with the oil price lol

That is not the main reason. to me, it's due to a shortage of oil storage. During the 3-month isolation period due to the epidemic, it seemed that all the oil depots were full and could no longer contain them. then they decide to sell to those who need to use it at extremely low prices and even give money to the buyer when buying their oil. This is unprecedented and this is an event that will be recorded in human economic history. and if in the next 2 months the price of oil is still below $ 25 / barrel then surely there will be more than a thousand businesses going bankrupt!

[Wind_FURY]

Okay we get it, less cars, less vehicles traveling so the oil is not that what we really need right now

But, why is the price be looking like this? It is not only the cars that uses oil, we also have a lot of machines that isn't running without the oil

Don't tell me the covid-19 global pandemic cases is inversely proportional with the oil price lol

It's actually a very long story. Although, the demand shock started it, it really was starting with a mis-timed price war between Russia and Saudi Arabia, when Russia walked out of an agreement to cut production.

[super bako]

Previously, world crude oil prices dropped dramatically in the midst of the Covid-19 virus pandemic. The decline in prices occurred due to market concerns over the decline in oil demand due to the Covid-19 virus pandemic...
  there are positive things in addition, the decline in oil prices can help the economy of the community in the midst of this co-19 pandemic, although activities have not returned to normal

[Sadlife]

The drop of demand due to halt of transportation, rises uncertainty to investors and to avoid contract which lead to panic selling because no one has the capacity to store oil that comes with Oil futures contract causing a big dump recently causing Oil to breach negative territory and this may result of an domino effect which could for other Economic Institution to collapse.

[FanEagle]

There are companies who uses oil to produce stuff as well, you think the only machine that oil works is cars? There are tons of manufacturing factories that uses oil to power up their machines as well which all are closed down right now and not requiring any oil.

Also, just cars is one thing but we are talking about ships and cargo and planes and so forth, basically many thinks that require oil is all closed down right now, so it is not just your car, we are talking about ALL cars and all trucks and all planes and all ships as well, put the machines on top of that and you have yourself less than 10% of what we were using, which of course means if there is less need for oil, the price of it will go down as well since people who get the oil out can't sell it to people they usually sold to.

[bearexin]

Well, this is going to make a lot of people understand that cryptocurrency is not the only asset or stock that can crash.Every market in the world, none is above falling, especially at a time like this. When this Coronavirus outbreak started a lot of assets and stocks started falling, and the good thing is that Bitcoin was able to recover after the slight fall, unlike so many others that found it difficult to recover. The cryptocurrency market has been recovering as of recent. Altcoins like Ethereum, Bitcoin Cash, ChainLink and a lot of them are doing just fine. I don’t see any other investment that is better than investing in cryptocurrency right now, just a few out there can compete.

[YOSHIE]

Don't tell me the covid-19 global pandemic cases is inversely proportional with the oil price lol

If you don't want to be involved with oil drying with covid-19, it doesn't matter, many other things can cause the price of oil to plummet and dry up.
If you know that, last week, US crude oil inventories fell very quickly from the estimated only 2 million barrels, the opposite was 11.1 million barrels.
Which is estimated to dry out only 2 million barrels, but the opposite is happening.

If you see and triggered from other things such as crude oil prices rose US $ 0.81 you can say this is more than 1.4 percent if you see per barrel can penetrate US $ 59.51, this is very big influence on the drying and sluggish oilthe world today.

[Yatsan]

Well, this is going to make a lot of people understand that cryptocurrency is not the only asset or stock that can crash.Every market in the world, none is above falling, especially at a time like this. When this Coronavirus outbreak started a lot of assets and stocks started falling, and the good thing is that Bitcoin was able to recover after the slight fall, unlike so many others that found it difficult to recover. The cryptocurrency market has been recovering as of recent. Altcoins like Ethereum, Bitcoin Cash, ChainLink and a lot of them are doing just fine. I don’t see any other investment that is better than investing in cryptocurrency right now, just a few out there can compete.

Anything can fall with just one bad news , with oil I am not very sure but I think it's the virus considering that the number of people using their cars have been lessen and the demand for the oil has been drop cause majority of countries that is affected by COVID are on lockdown right now. The other thing is the oil market has trigger a "short squeeze" so number of investor starts pulling out their money and they all started to short the oil. Anything can happen on the market, it just really takes a one bad news or someone big time messing up their money.

[danherbias07]

Car owners are really happy now filling a full tank.  

My neighbor told me how cheap it is now and he spends just a little money to fill his tank in full.
Yeah, there is a connection with Covid19.
Less vehicles are now being used outside because of the quarantine which means less demand.
Yeah, I'd rather ride my bicycle if I want to buy food at the store.

[Wexnident]

Can't really help it. The majority of us won't even leave our houses after all since checkpoints are all over the place and you wouldn't even be able to pass by them without a valid reason. Not to mention the fact that most usages of the car right now are used by the government to transport food and supplies, and they only number to a few hundred in each place. If you were to compare that to how the oil usage is normally in a regular day, you'd probably see that right now, less than 1% of the original amount are being used. There's also the idea of planes not being used and they also number quite a lot, so you had to have seen this kind of thing already when various major countries started implementing lockdowns.

[adzino]

I am pretty much sure you are aware of the Russia and Saudi Arabia oil war that has been going on for long, which ultimately ended up causing both of them to pump up significantly more oil than usual which caused a rise to global oil supply. This event was the main cause for the drop of the price of oil to less than $30 per barrel. A deal was later made between OPEC and other oil producing countries that to cut down of production causing the supply to reduce, but wasn't enough. Other countries started to take advantage of it, stored much of the oil, but then came the recent pandemic which caused the use of oil to drop thus causing increase of supply once again and the oils that were stored was not being used at all. This in turn caused prices to drop more. Now the oil war isn't something new, this kind of event has been taking place for a long time which ends up with a deal being made. Then another problem rises and so on causing the price to jump up and down.

[figmentofmyass]

Car owners are really happy now filling a full tank.  

meh, my car just sits in the driveway. do you have any idea how many trips to the grocery store i can make with one tank of gas? it's in the 100s.

A deal was later made between OPEC and other oil producing countries that to cut down of production causing the supply to reduce, but wasn't enough.

it hasn't even gone into effect yet, and won't for another week. SBA bailout loans are also breathing life into USA drillers, so next month's contract could see some craziness too, given the existing glut of stored oil. i wonder what's gonna happen.

[abhiseshakana]

What is really happening in the price of crude oil??? There are a lot of things here in our world that is utilized by using oil, but somehow there are technologies that are powered by solar rays. Innovation is really helping people overcome non-renewable source related problem. I don't think that the virus really contributed to this downward movement in oil's price into zero. I believe that there are still people or industries that uses oil in their activities or work to make their products and supplies. This lockdown really make people having no work e household still uses oil just to cook food but people have no money to spend because of the quarantine. Economy have no thing to do but to deal with these changes in price.

Like other commodities, the price of crude oil in the world market is based on supply and demand. The pandemic halted most economic activity and citizens' activities, the demand for oil dropped dramatically, and thus the price on the stock market. Oil purchase contracts in the world market are various. Some transactions are carried out for the future, called futures, or futures. This is a type of contract that allows the buyer and seller to set a specific date in the future when the oil purchased must be sent by the seller to the buyer, at a price determined at the time the transaction was made. The holder of this transaction letter can also trade these contracts on the stock market.

Futures on the crude oil market for May are due on April 21, which means, after that date these transactions cannot be traded anymore. This also means the seller must send oil to the buyer. The problem is that oil storage areas are now full because oil demand is very minimal. The less available storage space, the more expensive the storage costs, this is what makes many futures owners who try to sell the contract in the last days before maturity, because they want to get out of the contract and prevent the shipment of oil physically. That's what happened with this type of WTI crude oil earlier this week. The stock market is flooded with futures offers for May because they will soon be due. As a result, oil prices continue to plummet and enter the minus territory. The sellers scramble to offer incentives to those who want to buy the contract.

[Maestro75]

Okay we get it, less cars, less vehicles traveling so the oil is not that what we really need right now

But, why is the price be looking like this? It is not only the cars that uses oil, we also have a lot of machines that isn't running without the oil

Don't tell me the covid-19 global pandemic cases is inversely proportional with the oil price lol

You have the answer already in your comment. The pandemic lockdown has restricted movement and there is less cars on the road. Cars use oil. This is what has affected the oil price, and not the pandemic itself. If there is free movement even with the pandemic, the demand for oil will increase and price will rise up again.

[cosmofly]

For each type of security, there are risks. oil has never had to be negative because the warehouses are full and owners are wrong when they continue their strong production strategy. This is a problem of supply and demand, which is very normal. As for the crypto market, many people still say this is a scam market and I agree with them. when billions of dollars are traded each day with no conditions to guarantee the risk to investors, that's a very bad thing.

[Findingnemo]

Oil price hit down due to the extended lockdown, we still don't know when the pandemic will be resolved so countries are hesitating to stock the crude oil because more longer they store then the more expensive they will face and also some countries are in need of funds for a medical emergency which left the oil untouched so prices went down too much.

[bitgolden]

Honestly it doesn't matter what the reason behind it is, but maybe this period where we are all at home could help out the renewable energy which is literally the biggest enemy of the oil so far in the world. As long as we have sun and we have wind which we can't have zero amount, we will continue to survive with that.

Oil is not something you can find everywhere, eventually it dries up and there is no more to take out, sure we find more and more of it every day but that doesn't change the fact that it is a limited amount, whereas sun is rampant and everywhere, sun is lighting on the world every single minute, if it is not to you right now that means it is to somewhere else around the world but it is always hitting the world just right and that means renewable energy could be endless source of energy for us and which is where the smart money is going, that is why oil is getting hurt more and more each time, eventually we will not use it at all.

[cizatext]

Okay we get it, less cars, less vehicles traveling so the oil is not that what we really need right now

But, why is the price be looking like this? It is not only the cars that uses oil, we also have a lot of machines that isn't running without the oil

Don't tell me the covid-19 global pandemic cases is inversely proportional with the oil price lol



as of now XRP is worth more than a barrel of oil. Smack it to the face of those people who's shouting that cryptocurrency is soooo VOLATILE  

Oil price is in shambol right now and this is due to the effect of covid19, why so because the demand for oil consumption has dropped greatly so with this we can say oil is also as volatile as cryptocurrency. Am happy this is happening so the world can know the true nature of cypto.

[Wind_FURY]

Car owners are really happy now filling a full tank.  

My neighbor told me how cheap it is now and he spends just a little money to fill his tank in full.
Yeah, there is a connection with Covid19.
Less vehicles are now being used outside because of the quarantine which means less demand.

Happy, BUT nowhere to go, because of COVID-19 pandemic. Haha.

Yeah, I'd rather ride my bicycle if I want to buy food at the store.

I've been riding my bicycle more too. I love it, more exercise for me. Plus, doing it only during a pandemic? Ironic.