The equilibrium price of Brent oil is around $20/barrel. The only way to get oil back up is to get demand higher. Trump could buy up 3 billion barrels per day for example. This would quickly push up the price to $40/barrel.
Some say global oil demand is set to plunge by more than 10 percent from the typical 100-million-bpd consumption, as the raging coronavirus pandemic forces countries into lockdown. This is according to the world’s biggest independent oil trader, Vitol. This would push the oil price to $3/barrel.
On top of that, Trump is not going to bailout oil producers by increasing strategic oil reserves.
Update: China is now buying oil to prop up its oil reserves. This will push up oil prices.
Update 2: Trump is meeting with Saudi Arabia and Russia and we could see 10 million barrels production cuts.
Some say global oil demand is set to plunge by more than 10 percent from the typical 100-million-bpd consumption, as the raging coronavirus pandemic forces countries into lockdown. This is according to the world’s biggest independent oil trader, Vitol. This would push the oil price to $3/barrel.
On top of that, Trump is not going to bailout oil producers by increasing strategic oil reserves.
Update: China is now buying oil to prop up its oil reserves. This will push up oil prices.
Update 2: Trump is meeting with Saudi Arabia and Russia and we could see 10 million barrels production cuts.
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