Filling the storage tanks will make the price of raw materials is negative. As stated in the framework of the public hearing on the reduction of production in Texas the Vice President of the consulting company IHS, Markit Jim Burkhard, this risk is real.
“Our forecast that the price could fall below $ 10 per barrel… the oil futures Market is one question, but selling prices — absolutely another. And the fact that they are so different — this is a dangerous signal,” the expert warned.
For example, right now in Northern Canada, he said, selling prices can be $ 3.5 per barrel. “In this sense we are not so far from the zero value,” he continued. This situation stems, first and foremost, with the lack of storage.
“It’s not a problem of Saudi Arabia, is not Russia’s problem is not a problem of the United States, it is much more… We are predicting serious problems for several weeks with storage”, — said Burkhard.
“The question that we again and again get a negative price. Can this materialize? What does it mean? Pay someone to take your oil,” – said the expert.
“We’re not saying it will happen, we do not make such a forecast. But the fact that we get such questions from our clients suggests that this is a serious concern, serious risk, said Burkhard. – If you can’t keep the oil, you can get it”.
The US government is already trying to help the miners to attach their oil
Meanwhile, the U.S. Department of energy is already in talks with nine U.S. oil companies on the issue of placement of 23 million barrels of oil. Thus, the US administration is committed to help companies to cope with the glut of oil on the market.
Bloomberg reported, citing the energy Ministry that oil can be placed in four storage facilities on the territory of States Texas and Louisiana. There are American strategic oil reserves. The raw material must come back in may – June.
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