Oil Price Tanks from Pandemic Oil Surplus | Market News | Bullion Exchanges

OIL PRICE TANKS GLOBALLY
Despite OPEC and Russia working together to cut production of oil, the oil price still tanked globally. The oil market suffers as a lack of demand grows since people around the world are in quarantine. Global oil prices fell about 40% so far, making for the largest one-day drop in modern history. Some producers are even paying people to take barrels of oil as storage space minimizes.

Canadian oil prices turned down this Monday, dropping into negative price territory for – $0.01. In Alberta, their trading dropped even further to -$4.68 a barrel Monday morning. Landlocked producers are among those who are willing to pay people to take barrels of the oil surplus. This includes Alberta’s oil sands and US producers with limited access to global oil shipping routes.

The West Texas Intermediate fell to $10.77 USD per barrel on Monday, too.

WHY ARE THE OIL PRICES DROPPING NOW?
Much of the world has been in quarantine since March, and the shelter-in-place state most countries find themselves in continues through April. So why is the oil price tanking now? You might remember in February/March the oil price war between Russia and Saudi Arabia. This war did not help the future for oil because this price war began to establish the surplus producers face now.

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BULLION EXCHANGES
With the current market volatility, now might be a good time to invest in safe-haven assets. Take a look at our daily deals, and don’t forget to set up an account with us so you can get notifications about precious metals prices. Unfortunately, we temporarily closed our storefront until further notice from the impact of the coronavirus. Online orders might take between 15-30 days for shipping and handling because of international distributor delays. Currently, we are operating in a limited fashion to meet our customers’ orders. When you purchase from Bullion Exchanges, we will securely package and deliver your order to your address.

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Disclaimer. This article is not meant to serve as professional economic advice. Any action you take upon the information from this article and website is strictly at your own risk.

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