• 3 days Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 5 days Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 31 mins Rethinking election outcomes for oil.
  • 4 hours The Leslie Stahl/60 Minutes Interview with President Trump
  • 12 hours China leaders meet to discuss proposed 5 year economic plan.
  • 22 hours Clean Energy Is Canceling Gas Plants
  • 15 hours The City of Sturgis Update on the Motorcycle Rally held there, and the MSM's reporting hence
  • 17 mins Australia’s Commodities Heartland Set for Major Hydrogen Plant
  • 16 hours Saudi Oil Minister Abdulaziz said getting rid of oil "Far Fetched and Unrealistic". . True. . . but
  • 25 mins Video Evidence that the CCP controls Joe Biden
  • 2 hours Biden calls President Trump George . . . He confused Trump with George Bush. Folks this is scary.
  • 15 hours Irina Slav has a good article - Regarding Investors & Oil
  • 17 hours America's Frontline Doctors - Safely Start Living Again!
  • 17 hours Conoco Pledges ‘Net-Zero’ Emissions in Break With U.S. Rivals
  • 2 days OP article : "Trump blasts Biden Fracking Plan . . . "
  • 2 days GAME CHANGER: MIT Startup Commonwealth Fusion says Commercial Product by early 2030s ! THIS CHANGES EVERYTHING..
  • 2 days Biden denies fracking ban
China's Crude Imports Become Backbone Of Oil Price Recovery

China's Crude Imports Become Backbone Of Oil Price Recovery

The world’s largest oil importer,…

Why The Elections Aren’t Moving Oil Prices

Why The Elections Aren’t Moving Oil Prices

It is generally agreed that…

Hedge Funds Boost Bullish Oil Bets

Hedge Funds Boost Bullish Oil Bets

Portfolio managers increased their bullish…

Michael Kern

Michael Kern

Michael Kern is a newswriter and editor at Safehaven.com and Oilprice.com, 

More Info

Premium Content

Oil Prices Crash 24% As Storage Fears Mount

Oil prices look to be facing yet another harrowing Monday, with the price of WTI sliding by more than 20 percent in early morning trading.

Global oil storage is inching closer and closer to reaching its capacity, and worse, the problem is being exacerbated as more local governments across the world extending COVID-19 lockdown recommendations, weighing on crude demand.

According to Goldman Sachs, global oil storage could be completely full within the next three weeks, and another dramatic crash could follow.

Bjornar Tonhaugen, head of oil markets, Rystad Energy also sees storage reaching a critical level in a matter of weeks. “Actions are needed now as the problem stopped being theoretical and far away. The storage clock is ticking for producers and we are approaching the final countdown if no further action is taken," he explained.

The perfect storm for oil markets has left Brent crude oil prices down 68 percent on the year, while WTI has fallen by 72 percent. The low crude prices have left domestic shale producers fighting for survival.

While once shining-U.S. Shale producer Whiting Petroleum was the first company to file for Chapter 11 bankruptcy, it surely won't be the last, with the shale patch looking particularly vulnerable due in large part to their high breakevens and history of taking on debt.

Noble Energy (NBL), Halliburton (HAL), Marathon Oil (MRO) and Occidental (OXY) have all lost more than 66 percent of their market cap in just a few short months. Even majors such as Exxon (XOM) have lost as much as 40 percent of their value.

Buddy Clark, co-chair of the energy practice at Houston law firm Haynes and Boone, noted, "It's hard to believe that 100 bankruptcies is the optimistic view. That just shows you where we are," adding "I don't think I've seen anything like it in my lifetime. It's unprecedented."

By Michael Kern for Oilprice.com 

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • PaulMcgroary on April 27 2020 said:
    No a local land locked US only oil future dropped 24%.

    The rest of the world whether it was Brent, OPEC, Urals or Bonny just moved around a little.

    Last weeks negative WTI settlement says just how unrepresentative WTI is.

Leave a comment




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