Oil Demand Dropped 25% and Could Go to Half
- Apr 3, 2020 2:45 pm GMT
Oil prices have dropped to $20 per barrel and that is for the most expensive oil. There is cheaper oil at $10 per barrel. Oil demand has dropped 25% as no one is driving. Companies like Whiting Petroleum are filing for bankruptcy. The oil will still exist. Oil and gas assets will be purchased out of bankruptcy. The COVID-19 shutdowns mean 2 billion people are staying at home, so transportation usage has cratered. The amount of purchases and economic activity has cratered. This means less industrial activity. Oil and gas wells and rigs are being shuttered. This process of shutting
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