Prices have collapsed in recent weeks as demand for the commodity evaporated owing to lockdowns and travel restrictions imposed worldwide to fight the virus. — Reuters pic
US benchmark West Texas Intermediate fell 5.5 per cent to US$16.00 a barrel while Brent crude, the international benchmark, was off 1.4 per cent at US$21.14 a barrel. Last week, US oil fell below zero for the first time as investors scrambled to offload it before the expiry of a trading contract, but could not readily find buyers.A key worry for traders is that storage facilities — particularly in the United States — cannot cope with the oversupply.
The continued concerns about storage overshadowed signs that some countries — including Kuwait and Algeria—are starting to slash production in line with a major agreement hammered out this month.
I hereby offer my backyard for storage of fuel.