New York, United States of America (CNN) – The oil price war between Saudi Arabia and OPEC on the one hand and Russia on the other hand continues to enter April 1, which raises fears of oil barrel prices reaching the negative, according to observers.
With the increase in supply dramatically and the decline in demand for black crude, Goldman Sachs, which is one of the oldest financial and investment services institutions in the United States of America and the world, has highlighted that the continuation of the situation as it is means that stores, refineries, pipelines and oil tankers reach their maximum capacity which is not It has been happening since 1998, which means that the oil produced will have no capacity or destination to go.
The price of a barrel of oil falls below zero
While a barrel of West Texas oil and a Brent mix are trading at about $ 20 a barrel, some other oil mixture prices have fallen to odd numbers per barrel, while other prices, for example, Wyoming traded recently at “minus 19 US cents” a barrel, according to Bloomberg, its report last week. .
Even with regard to the available storage options, which is loaded onto giant oil tankers and stored there, this is not always an option, given that these tankers will eventually reach their highest levels of absorption and will not withstand the most massive pumping volume.
According to JBC Energy, 6 million barrels of oil per day will be “homeless” and wandering without a destination in April this figure, and this number is expected to rise to 7 million barrels of oil in May.
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