The eyes of the world are on the oil markets these days. From Saudi Arabi and Russia arguing over output, to an agreement to reduce output at OPEC. But this week, in a historic “first,” the West Texas Intermediate May 2020 contract sank into negative pricing. While market watchers are busy trying to make sense of this, Forbes staff reporter, Sarah Hansen, put the situation into perspective.
Boiling it down to two critical issues: the industry is struggling with a demand problem (people and major industries aren’t using nearly the same amount as they used to) and a storage problem (where is the surplus supposed to go?). For additional context, Ms. Hansen created a list of some “key points” to consider and offers some background that points to what to watch out for moving forward.
Read more from Sarah Hansen here.