Crude oil prices have cratered over the past few weeks. West Texas Intermediate, the U.S. oil price benchmark, has tumbled from the low $60s earlier this year to around $20 a barrel in recent days. That's due to a combination of the COVID-19 outbreak's impact on demand and the collapse of OPEC's market support agreement with Russia. The meltdown in the oil market is putting intense pressure on the finances of American oil producers.
However, low oil prices aren't the industry's biggest problem right now. An even greater concern is that storage space is quickly filling up because of the dual shocks from surging supplies amid crashing demand. That has the potential to create even an even bigger problem for the industry in the coming weeks.
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Source: Motley Fool
(March 31, 2020 - 8:29 AM EDT)
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