Oil Man Jim Company Oil & Gas Podcast & Blog, 26th April 2020
April 26, 2020
Oil has been trading like a penny share, bagging at one point earlier in the week. For the first time ever, the price even went negative for delivery. It’s being hit from both ends with too much supply and too little demand and the worry is when will conditions stabilise.
Producers are cutting output, but the great unknown of course is the Coronavirus, which countries around the world have attempted to counter with varying degrees of success. It will all stabilise, people will just have to adapt. However that takes time and governments are hesitant to disclose what will be the necessary new rules until the population gradually adjusts. It’s not really about politics (experienced doctors, scientists and civil servants are in charge), the political aspect just impacts the way it’s all presented, which unfortunately in some countries hasn’t been done too well.