Oil plunges below zero for first time with May contract ending

Re:Oil plunges below zero for first time with May contract e... by ccozan on Monday April 20, 2020 @10:54AM (#22924314)

After the WW2 House of Saud made an agreement [1] with USA that in exchange for the US Army support of Saud, they will pump any amount of oil that is needed.

Now not sure how long this will last, since the current price war is directly affecting the US producers. Time will tell.

[1] https://www.vox.com/2016/1/6/10719728/us-saudi-arabia-allies

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Re:Oil plunges below zero for first time with May contract e... by enkid on Monday April 20, 2020 @11:49AM (#22924955)

The US is currently a net exporter of oil, or at least was until the recent price drop. Saudi Arabia's capacity of pumping oil is completely based on what they view as their best interest in making money while maintaining market share. That's why they tried to take US Shale oil out, and why they tried over producing recently to get Russia to come to the table for a production cut. They've also embargoed the US in the past.

https://en.wikipedia.org/wiki/1973_oil_crisis

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Re:Oil plunges below zero for first time with May contract e... by cgh on Monday April 20, 2020 @02:52PM (#22927041)

At the end of the day, US shale companies going under could benefit Canadian oil most of all, especially now that Enbridge has US approval.

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