‘I’m Just Living a Nightmare’: Oil Industry Braces for Devastation
The oil industry has lived through many booms and busts, but never before have prices collapsed as they have this week. On Monday, one closely watched price fell below zero, meaning some traders had to pay others to take crude oil off their hands. That price — for May delivery — recovered on Tuesday, but not nearly to levels where oil companies can make a profit. At the same time, the price of oil for June delivery fell by about half to roughly $10 a barrel. “We are worried that the current disorderly market has adversely damaged the industry,” said Ben Luckock, co-head of oil trading at Trafigura, a large exporter of American crude. “In the short term some form of government assistance is likely needed because the price levels we are currently transacting at are unsustainable for U.S. producers.”
This article was originally published by New York Times on the 21 April 2020.
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