Good day all. This story is just breaking and trading is still going on as I write this. It seems that for the first time since record keeping began, the price of crude oil has collapsed below $0.00 a barrel.
Oil prices had been heading down prior to the start of the Great Panicdemic of 2020, thanks to a price war between Russia and Saudi Arabia, and our own oil companies fracking oil field long since thought used up and flooding the markets with crude oil.
Then came the Panicdemic and the shut down of the global economy by panic stricken politicians. They closed down everything they could, forcing people to stay home. The end result of this, along with the warmer weather, no one was driving anywhere and they weren’t buying any gasoline. (Petrol for those who drive on the left side of the road)
The oil drillers have kept on drilling and pumping, but since usage was way down, they’ve finally run out of places to store the oil. The refineries aren’t processing anywhere near what they usually do since they’re not getting any orders for product. This has led the stock market to once again take a dive.
Now what does this mean to the consumer? This is interesting. First, I’m seeing gas prices below $2/gallon for the first time in almost 20 years. However, I don’t need any right now. I filled up the Anger Central Transport Vehicle just prior to my real world job sending everyone home to work. This was in early March. I have just gone slightly below 3/4th of a tank. At this rate, I may need to fill up again sometime in July or August.
Now, President Trump has called for the restarting of the American Economy. As things ramp back up, energy usage will increase and the oil reserves in storage will start being processed. There will be some upset in the corporate world as some petrochemical companies go under, and many of the major companies are seeing their stock prices slide as profits dry up. But, this will pass and by this time next year, unless something else happens, like an alien invasion, oil prices will recover.
In the mean time, as things start ramping up, a number of petrochemical costs to businesses and consumers are going to be far lower then anticipated. This will mean lower costs for goods and higher profits. For the consumers, the crashed oil prices are, for now, a good thing. Enjoy the lower prices while they last, they will go back up again.
Thatisall
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