• 7 days Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 9 days Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 14 mins Most ridiculous green proposal
  • 14 hours The Green Hydrogen Problem That No One Is Talking About
  • 6 hours Biden's laptop
  • 29 mins QUESTION: With worldwide 1.4 Billion passenger vehicles and 360 Million commercial vehicles using combustion engines how long before gasoline and distillates measurably decline. .
  • 49 mins Rethinking election outcomes for oil.
  • 2 hours The City of Sturgis Update on the Motorcycle Rally held there, and the MSM's reporting hence
  • 1 day China Sets Its Sights On Global [EV, AI, CRISPR, Fusion, Navel Lint Collector] Dominance
  • 3 hours Video Evidence that the CCP controls Joe Biden
  • 7 hours DOJ confirms FBI investigating Hunter Biden since last year for money laundering.
  • 15 hours Making diamonds from thin air
  • 9 hours P@A will cost Texas Taxpayers $117 Billion.
Julianne Geiger

Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group.

More Info

Premium Content

Oil Jumps As Markets Panic

Oil prices rose slightly on Monday, but the oil markets are still in full-blown panic mode as the number of American states in complete lockdown grows, threatening demand for crude oil.

WTI crude may be trading up 2.96% up on the day, but it’s still only $23.30 per barrel—well below the breakeven point for US shale and down more than 50% month over month. The Senate stimulus package that the United States was foolishly hoping would be done on Sunday still isn’t. This contributed to the price slide for oil, but the reality is, the United States is shutting down to slow the spread of COVID-19—and shutdowns mean less transportation, and less transportation means less demand for crude.

The narrative in the United States has switched over the last two weeks from containing the virus—now a pipe dream—to slowing its spread to keep hospitals from being overwhelmed. To do this, various states have issued stay-at-home or shelter-in-place orders.

These shelter-in-place orders are unlikely to affect the oil industry directly because most oil companies have received—or are likely to receive--a “critical infrastructure” exemption that will allow them to operate. But oil demand in the US is faltering and posing a grave threat to the oil industry.  

As of Monday, California, Connecticut, Delaware, Illinois, Indiana, Louisiana, Michigan, New Jersey, New York, Ohio, and West Virginia have all issued extensive state-wide stay-at-home orders that either are already in effect or will go into effect Monday or Tuesday. The shelter in place orders have only just begun—the US will soon see the drop off that we knew was right around the corner.

But it might be even worse than expected.

Already refineries in the US are starting to scale back. On Saturday, Exxon’s refinery in Baton Rouge cut back production by about 100,000 bpd. Last week, Marathon Petroleum cut back production at California’s largest refinery, and Phillips 66 cut back its production at its Los Angeles refinery.

Demand for crude oil will fall in concert with refineries.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Andrew Doolittle on March 23 2020 said:
    Epic price fail and of course not the fault of Industry but horrific Government *work*(trade war with China, talking smack about the US Dollar, ordering small businesses of every type to be closed, etc). The USA will be going through a massive recession by far the biggest since the Great Depression and without any doubt *statist ideology* has played a starring role in this epic collapse.

    The USA will recover but it will take time.
    Years not weeks or Months.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News