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Financial Markets: April 20, 2020, unforgettable for U.S. oil

19/04/2021
Source : ORISHAS FINANCE
Categories: Index/Markets

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April 20, 2020 - April 20, 2021, a year that West Texas Intermediate (WTI) prices plunged into negative territory for the first time in their history. An earthquake that brought the WTI to minus 37 dollars.

April 20, 2020 is a black day that has seen WTI prices plunge into negative territory. Brent crude fell to $16 a barrel, its lowest level of this century. Investors who found themselves with millions of barrels on their hands were willing to pay potential buyers to get rid of their oil.
This fall in the price of black gold and the plunge in the stock markets will put in trouble the researchers of black gold of modern times who have abounded in recent years in the country of Uncle Sam. The majority has gone into debt to a point where it will be forced to disappear altogether with such "prices".
The U.S. credit rating agency says exploration and production companies in the U.S. and Canada have about $86 billion in debt to repay between 2020 and 2024. But, on May 1, 2020 OPEC+ withdraws nearly 10 million barrels per day. And the barrel of WTI is, today, above 63 dollars.

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