• 9 hours The Federal Reserve and Money...Aspects which are not widely known
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 55 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days "And this is perhaps the most dangerous kind of government there can be."
  • 10 hours Coincidence of EIA Report Delay? - "I had seen it delayed minutes, and a couple of times a few hours, but don’t recall something like this — do others?" asks Javier Blas
  • 1 day Demonising fossil fuels has caused major grid problem in Australia
  • 10 hours "...too many politicians believe things that aren’t true." says Robert Rapier
  • 2 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 1 day Welcome to Technocracy - The New World Energy Order... "1000s Of Sydney Homes Plunged Into Darkness As Aussie 'Price Cap' Policy Sparks Energy Shortage"
  • 3 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 327 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 5 days ESG Topic - "German Police Raid Deutsche Bank, DWS Over Allegations Of Greenwashing" - ZeroHedge Bloomberg and others
Robert Rapier

Robert Rapier

More Info

Premium Content

Could Oil Prices Fall Below $50?

One of my energy sector predictions for this year was that oil prices would not drop below $50 a barrel. This may turn out to be the fastest falsified prediction I have ever made.

Since I made that prediction, China has experienced an outbreak of coronavirus, an illness similar to severe acute respiratory syndrome (SARS). So far, the virus has killed at least 41 people in China, and around 1,400 people have been infected.

The country has taken dramatic measures to contain the spread of the virus. The Chinese government has quarantined millions of people in Wuhan, with travel networks shut down or severely restricted.

Cases have now been reported in many other countries in southeast Asia, but cases have also been reported in Europe and the U.S.

Oil prices have already been under pressure as a result of oversupply and slowing economic growth in China. However, travel restrictions will further reduce demand.

There is precedence for a real economic impact from these sorts of outbreaks. Oil prices fell nearly 20 percent during the 2002-2003 SARS outbreak, but the impact was relatively short-lived as the outbreak was brought under control.

The ultimate impact on demand will depend on how quickly the outbreak is contained, but last week West Texas Intermediate (WTI) and Brent respectively fell nearly 6 percent and 7 percent. WTI is presently trading at $54.19/bbl — only 8 percent above that $50 level.

By Robert Rapier

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News