Price war could bring oil to $10 a barrel with storage capacity running low 

A perfect storm is brewing in the energy market that could send oil prices crashing to $10 a barrel.
A combination of faltering demand resulting from the coronavirus outbreak and a price war that has seen a rise in production had already raised fears that the industry was entering its worst crisis in hundred years. Now news of shrinking storage space is expected to add to the woes of major oil producing countries.
Oil storage facilities are said to be 75 per cent full already as a result of the oil glut that followed China’s shut down of major refineries in January due to the coronavirus outbreak.
READ: Saudi urged by US to take responsibility over oil price war
The pandemic has strangled the global economy, forcing factories to shut down, grounded airlines and cut the need for fuel in general.
A sharp drop in demand would normally prompt major producers to reduce production. However, Saudi Arabia, the world’s largest producer, is locked in a price war with rival Russia and is determined to keep raising production.
With the world expected to be swimming in surplus oil the race is on to find extra storage space.
“For the first time …

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