Oil's Epic Plunge
Bloomberg Businessweek|April 27, 2020
Crude prices dipped into negative territory, and the world is still awash in more oil than it can use
Peter Coy, Javier Blas, and Will Kennedy
Oil's Epic Plunge

When oil prices crashed to below zero for the first time on April 20, the immediate financial impact was limited. The number of futures contracts priced at less than zero was just half a percent of all oil traded on Nymex, formerly the New York Mercantile Exchange. The only delivery month that went negative was May, a contract that was on the verge of expiring anyway. Investors were still pouring real money into exchange-traded funds that benefit from rising oil prices.

Still, the striking fact that some unlucky people had to pay to get rid of crude oil in the world’s most liquid market raised fears that there was more trouble to come. “Today was a devastating day for the global oil industry,” said Doug King, a hedge fund investor who co-founded the Merchant Commodity Fund. Daniel Yergin, a Pulitzer Prize-winning oil historian and vice chairman of research and information company IHS Markit Ltd., said, “The May crude oil contract is going out not with a whimper, but a primal scream.”

The Covid-19 pandemic has killed demand for oil far faster than the world’s oil producers have been able to rein in production. Storage is ordinarily the buffer that stabilizes the oil market. But the overproduction has gone on for so long that there’s almost no place left to store crude. “It’s kind of desperation time,” says energy economist Philip Verleger of PKVerleger LLC.

Bu hikaye Bloomberg Businessweek dergisinin April 27, 2020 sayısından alınmıştır.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

Bu hikaye Bloomberg Businessweek dergisinin April 27, 2020 sayısından alınmıştır.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

BLOOMBERG BUSINESSWEEK DERGISINDEN DAHA FAZLA HIKAYETümünü görüntüle
Instagram's Founders Say It's Time for a New Social App
Bloomberg Businessweek US

Instagram's Founders Say It's Time for a New Social App

The rise of AI and the fall of Twitter could create opportunities for upstarts

time-read
4 dak  |
March 13, 2023
Running in Circles
Bloomberg Businessweek US

Running in Circles

A subscription running shoe program aims to fight footwear waste

time-read
3 dak  |
March 20 - 27, 2023
What I Learned Working at a Hawaiien Mega-Resort
Bloomberg Businessweek US

What I Learned Working at a Hawaiien Mega-Resort

Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.

time-read
10 dak  |
March 20 - 27, 2023
How Noma Will Blossom In Kyoto
Bloomberg Businessweek US

How Noma Will Blossom In Kyoto

The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking

time-read
3 dak  |
March 20 - 27, 2023
The Last-Mover Problem
Bloomberg Businessweek US

The Last-Mover Problem

A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps

time-read
10+ dak  |
March 20 - 27, 2023
Tick Tock, TikTok
Bloomberg Businessweek US

Tick Tock, TikTok

The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban

time-read
10+ dak  |
March 20 - 27, 2023
Cleaner Clothing Dye, Made From Bacteria
Bloomberg Businessweek US

Cleaner Clothing Dye, Made From Bacteria

A UK company produces colors with less water than conventional methods and no toxic chemicals

time-read
3 dak  |
March 20 - 27, 2023
Pumping Heat in Hamburg
Bloomberg Businessweek US

Pumping Heat in Hamburg

The German port city plans to store hot water underground and bring it up to heat homes in the winter

time-read
3 dak  |
March 20 - 27, 2023
Sustainability: Calamari's Climate Edge
Bloomberg Businessweek US

Sustainability: Calamari's Climate Edge

Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment

time-read
4 dak  |
March 20 - 27, 2023
New Money, New Problems
Bloomberg Businessweek US

New Money, New Problems

In Naples, an influx of wealthy is displacing out-of-towners lower-income workers

time-read
4 dak  |
March 20 - 27, 2023