• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 36 mins COVID 19 May Be Less Deadly Than Flu Study Finds
  • 33 mins Would bashing China solve all the problems of the United States
  • 5 hours 60 mph electric mopeds
  • 1 hour Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 44 mins Let’s Try This....
  • 53 mins Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 5 hours China to Impose Dictatorship on Hong Kong
  • 56 mins HVDC Cheaper Than Low-carbon Natural Gas
  • 5 hours Nothing can shake AMLO’s fossil-fuel fixation
  • 11 hours Pompeo's Hong Kong
  • 58 mins Oil and Gas After COVID-19
  • 6 hours Iran's first oil tanker has arrived near Venezuela
  • 6 hours Natural gas is crushing wind and solar power
  • 7 hours New Aussie "big batteries"
Oil Jumps 11% On Signs Of Demand Recovery

Oil Jumps 11% On Signs Of Demand Recovery

U.S. benchmark oil prices surged…

The Oil Rally Is Running On Fumes

The Oil Rally Is Running On Fumes

Oil prices rallied on Monday…

Shale Restart Threatens WTI Rally

Shale Restart Threatens WTI Rally

The rally in WTI crude…

Michael Kern

Michael Kern

Michael Kern is a newswriter and editor at Safehaven.com, Oilprice.com, and a writer at Macro-Investing.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