The oil industry has lived through many booms and busts, but never before have prices collapsed as they have this week. That price — for May delivery — recovered on Tuesday, but not nearly to levels where oil companies can make a profit. A decade or two ago, low oil prices would serve to bolster the American economy by reducing energy costs. Simply put, the global oil industry is producing vastly more oil than the world needs — about 30 million barrels a day too much. “It’s a bloodbath out there; can you imagine minus $37 a barrel?” he said, referring to the price oil fell to on Monday.

Source: bd News24 April 22, 2020 01:52 UTC