Oil giveaway spells doom, brings out market bears

FILE PHOTO: Crude oil storage tanks are seen from above at the Cushing oil hub, in Cushing, Oklahoma, March 24, 2016. REUTERS/Nick Oxford

“This is part of the deflation process,” said Murray Gunn, head of global research at market forecasting firm Elliott Wave International. Those preparing for worse to come see a slew of more fundamental problems ranging from oil speculators going bust to the destruction of the U.S. shale industry and a credit crunch if energy firms’ bad debts grow and banks tighten their belts.

“Then the question is do they then start re-evaluating other things? So, all commodities trading, copper, the whole shebang ... we’re reading the fundamental collapse as something not just for oil but for everything.”The price crash also reflects the near total absence of energy demand - once regarded as constant.

“This price doesn’t work for anyone, but it’s unclear to me what more can be done without getting a ‘fix’ on the virus. I suppose oil has tested positive for COVID-19.” “Every economic data estimate as we got closer got more apocalyptic and in every case so far they weren’t bearish enough,” said Grant Williams, author of Things That Make You Go Hmmm... and portfolio and strategy advisor to Vulpes Investment Management in Singapore.

It has not been a reliable commodity for some time.

It’s not as worthless as media is! oilandgas OilMarketCrash

It will probably bounce back before too long. It's always been a horribly volatile industry - one reason I was glad to trade my brief work in the exploration geophysics world for a lifetime working with volcanoes and earthquakes. Far more reliable in a weird way.

It works out well as the US government will get paid to take oil & full the strategic petroleum reserves without spending a dime.

Yep trump is a GREAT business man only 7 bks...he's a genius!! (sarcasm)

Yes please stop drilling and fracking etc. greenenergy

Give it to poor countries!

Wow you guys really have your finger on the pulse!

Stupid... it's the global supply, you embarrassment of a news agency

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