• 3 minutes Will Iron-Air batteries REALLY change things?
  • 7 minutes Natural gas mobility for heavy duty trucks
  • 11 minutes NordStream2
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 5 hours U.S. Presidential Elections Status - Electoral Votes
  • 2 days Evergrande is going Belly Up.
  • 2 days World’s Biggest Battery In California Overheats, Shuts Down
  • 5 hours Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 14 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 1 day Poland Expands LNG Powered Trucking and Fueling Stations
  • 12 hours The unexpected loss of output from wind turbines compels UK to turn to an alternative; It's not what you think!
  • 3 days And now, hybrid electric locomotives...
  • 3 days The Painful Death of Coal
  • 3 days Ozone layer destruction driving global warming
  • 3 days 'Get A Loan,' Commerce Chief Tells Unpaid Federal Workers
  • 2 days Is the Republican Party going to perpetuate lies about the 2020 election and attempt to whitewash what happened on January 6th?
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




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