₦airaland Forum

Oil plunged below $1 a barrel as the coronavirus pandemic ravages global economies, threatening to erase an entire decade of demand growth, slashing thousands of jobs and wiping out hundreds of billions of dollars from company valuations.

Industrial and economic activity is grinding to a halt as governments around the globe extend shutdowns due to the swift spread of the coronavirus. Oil has faced its own knock-on effects with a market massively oversupplied and nowhere to put physical barrels of crude. An unprecedented output deal by OPEC and allied members a week ago to curb supply is proving too little too late in the face a one-third collapse in global demand.

I won't be surprised if we see negative oil price. Tough days ahead. At some point in the last 30 mins, it dropped to nearly $0.

US WTI crude drops below $1. Our oil should be like $18

Irrelevant news.

tempest01:
US WTI crude drops below $1. Our oil should be like $18

Many people can't just comprehend, they mistaking US oil price to be one and the same with global oil price.

tempest01:
US WTI crude drops below $1. Our oil should be like $18

Thanks for bringing this up.
Many won't even care to know if this is for Nigeria or US.

tempest01:
US WTI crude drops below $1. Our oil should be like $18

$12

That's correct. This is US Oil and not Global Oil price.

Corona why?

Look at this!

Stalwert:
Many people can't just comprehend, they mistaking US oil price to be one and the same with global oil price.

Laws of economics suggests our oil will also fall. US oil is about -30 dollars a barrel. Meaning they will pay you 30 dollars for each barrel and give you the oil. This means there's little demand.

That little demand will naturally move to the WTI crude (who no like free thing?) and no one will buy our oil. Our oil price will also fall. Maybe not to negative though. But it will fall enough for WTI to regain.