Oil price futures slipped into negative territory on Monday – a shocking oil-market first – making previous doom and gloom forecasts of OPEC’s too-little-too-late production cuts now seem like sober predictions rather than overzealous fearmongering.

But are negative oil prices here to stay?

WTI crude oil futures settled at -$37.63 per barrel on Monday, down $55.90 on the day. Not only was it the largest price drop for the commodity in history at some 305.97 percent, but it was also the first time that the WTI futures market fell below $0….CLICK for complete article

On April 20th, 2020 futures for crude oil’s US benchmark (WTI) went into negative territory – meaning for the 1st time in history producers would pay traders to take oil off their hands.

While it’s unlikely you’ll be paid to take gas from the pump in the near future this does not give any indication of how out of whack the oil market is…click for full article.

On April 20th, 2020 futures for crude oil’s US benchmark (WTI) went into negative territory – meaning for the 1st time in history producers would pay traders to take oil off their hands.

While t’s unlikely you’ll be paid to take gas from the pump in the near future this does not give an indication of how out of whack the oil market is…click for full article.

The crash in oil demand brought prices below zero for the first time in history Monday as storage for the commodity runs out, but this issue is a short-term one, according to one analyst.

WTI crude was trading 86.7% higher at the time of publication Tuesday but was still negative by $5.

“The drop in oil price reflects some ‘short term’ worries about storage,” Nadège Dufossé, deputy global head of multi-asset at Candriam, said in a note.

Dufossé said that while oil production cuts have been agreed to, they will not be sufficient come May and June given the freefall in demand and strong uptick in inventories.

“For the oil price to rebound we would need higher production cuts from May 1, as well as better perspectives on demand increase that should follow the easing of lock down in various countries.” CLICK for complete article

As stay-at-home orders keep businesses shuttered across much of the United States, electricity demand has fallen to a near 17-year low, according to analysts at the Edison Electric Institute (EEI) trade group, as cited by Reuters.

Over the last week ending April 11, US power output fell to just 64,177 gigawatt hours—down 6.1% for the same week last year, and the lowest weekly output since mid-2003.

This drop in power demand is coinciding with a drop in prices as well, leading to a sell-off in wholesale US electricity markets, according to the Financial Times. It will mean a smaller bottom line for power companies, which some suggest may shift demand away from fossil fuels and toward wind and solar.

Power futures, according to data from Nodal Exchange cited by FT, have dropped between 22 percent and 37 percent over the last two months….CLICK for complete article