Yesterday, the US Crude Oil (West Texas Intermediate) futures fell below $0 USD.
Yes, you read that correctly. The WTI oil futures lost over 100% of their value finishing at a record low of -$37.63 per barrel.
Strangely enough, at the same time, Russia’s Urals blend was trading at $24.55 per barrel and the June index for Brent Crude was settled at $25.57 per barrel.
One of the biggest issues for all oil producing nations isn’t the ability to extract, but storage.
With the record lows in demand at the moment, and the glut in supply, it’s hard to see the WTI futures rebounding in the next month or two…
My personal opinion is it will probably take at least 6 months for the markets to reach some sort of equilibrium; and this might very well be the death blow to the US Shale market.