How the Oil Bust Could Reshape Global Markets | WSJ
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- Опубликовано: 15 апр 2020
- The coronavirus pandemic has emptied out cities around the world, causing a historic drop in oil demand just as production was reaching new highs. WSJ explains the oil price bust that could reshape energy markets. Photo Illustration: Carlos Waters/WSJ
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#WSJ #OilPrices #Explained
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"There's no winner." I disagree. I would say the environment is the winner.
Right on
Trumani and Tesla
temporarily
Agreed...
In the very short term, yes. But after that, consumers will be more likely to consume greater amounts of oil than cleaner alternatives if prices remain so low.
The only thing missing from this video is one shred of useful information.
Yep, I agree
Welcome to capitalism¡😷🙈🙉🙊💀 #StaySafe
@Billbo Bro you have to really be trying cuz what that person said was astronomically dumb
@Billbo Bro your even dumber, so sorry. I guess dumbness has levels
klausmkl *you’re... don’t pipe up
Well didn't get much from that.
Yeah I think my main takeaway is that in the future countries might be more careful to collaborate on keeping prices stable, but I feel like there’s more I’m meant to get from it and I didn’t
Lost those minutes
its cheaper to pay people to take the oil off their hands than it is to shut down pumping operations and let people off with compensations. At least thats my guess. besides if oil shills restrict oil production too much to hike the prices, governments are going to intervene and take over oil production.
@@youtubesbestchinachannel9073 yes dumbie you did dumbie bc u are uneducated fool
It sucked
3:08 "And the pain became unbearable"
Dont you mean...unBARRELble 🛢😉
get out GET OUTT!
@@rizqyaqilherlindra7150 😂😂😂
😂😂😂
Lolz
Brilliant! 😂
Thought this would explain, it didn’t
Jacob DeAngelis it did explain it, you just didn’t catch it.
Exactly it explained nothing. I work for thr oil industry and it's scary to think what will happen next😥
😂
I’m guessing you are hoping they will touch on the futures oil contracts?
You're correct. They said "how the oil bust could reshape..." but never explained. I suppose they could have added 2 minutes to the video to go into detail about how, if US oil producers aren't provided a financial buffer, small towns will ghost town similar to what happened to Detroit post Recession. Which wouldn't surprise me. Texas is largely based in Oil and Healthcare, so while they'll be ok, it would make sense to focus on the healthcare portion and hopefully Texas can be the one to produce the vaccine to buffer their economy against their oil losses. But overall, I think that if people are smart they'll support oil towns until this is all over, or those other countries will get what they wanted in the long run. So I would say - if you see funding coming in, or gov purchases of rigs, then that's good news. If you don't see that, expect all the local breakfast joints and hotels and car lots to close up real quick.
Perfect moment to curb oil addiction and support alternative energy source.
No Bo Yes!
the problem is that nobody want to switch if the can get cheap oil instead.
Id say it is the worst moment actually, think about it, the reason why people dont support alternative energies is because it is expensive
Is oil really cheap if it's your only option?
@@nobo1682 it is if the market is floded with it, wich it will be for at least the next year
Soo they attempted to collude to artificially price fix and gouge customers, and it didn't work. I call that a win.
they always collude and it mostly work. they just did not manage to collude enough for prices to go up. at least for now.
yeah you do realize it is USA and Canada's interest to have higher oil prices as so many are employed by the higher cost oil industries here. Elsewhere is much cheaper cost to produce but then we'd have no energy security. So more complicated than simple cheap is good.
The US producers borrowed heavily for expansion. Now they have to repay those loans. Considering how much the big guys keep offshore to avoid paying taxes, I see no reason the US taxpayers should bail them out. Go research the big oil annual reports.
@@s.leemccauley7302 don't disagree but realistically it's first an election year and there are far more people employed here than the already dead coal industry from last election. Also this is a matter of energy security for the US. If they let these companies go under it is back to importing oil again which took decades to get away from. It's certainly a complex situation which no easy right answer.
RainCity84 the easy answer is electric vehicle investment and subsidies.
Well at least there's a drop in pollution
temporarily
Untill we use all that cheap oil
@@jryde421 until we start to use the cheap oil. It's not the extraction, it's the usage that pollutes the environment.
@@user-wv1in4pz2w exactly. Knowing humans we might use alot in a short amount of time.
All this oil is still being extracted but is sitting in storage. It will be used soon.
not much insight in that 5 minutes of regurgitated news
Not every video has to contain new insight. I found this useful as a concise summary of the situation.
"There is no winner in this current situation" except for everyone who breathes air.
Yea a form of the green new deal lol
Prefect reply
@swave158 could be. The Saudis forced Russia to reduce production. That is why they had that price war. And it is what triggered the first drop in markets when big investors pulled their money. The virus was secondary. The Saudis are also restructuring their economy.
Industry up against the ropes... might be... it is... down for the count! Humanity for the win!
You idiots seem to forget where your food comes from. Tractors use fuel, trucks use fuel. I guess if we all just stop working, and eating, the planet wins. You forget you will be the first to get eliminated.
Doesn't even mention that the US cost to produce is 7 times higher than SA
Paul T it’s a 4 minute video dude...
Youshea19 Because oil is located deeper ...Countries in the Persian gulf oil is very close to ground...And hence cheaper
Money Maker no it’s because there’s no regulation and land is much cheaper
@@KCJbomberFTW No, you are not completely wrong. But your points are minor ones.
The oil that formed in the middle east is shallow. The Ghawar oil field in SA formed more recently in a geological time scale (Jurassic cica. 150 million years ago), meaning there isnt much sedimentary rock above it. You just need to drill through the sand and voila.
The Permian oil fields, the biggest in the US (found in Texas) were as the name suggest created in the Permian 300 million years ago. Also Texas oil is shale oil, the production often involves expensive fracking techniques to get the gas and oil out. This makes the break even point of Saudi Aramco much lower then US shale oil companies. Which is why Saudi Arabia started this price war, they could afford to drop prices and still make a small profit, this would force US oil companies to drop oil prices below their break even and take losses they could not sustain, eventually they would go bankrupt/insolvent and Saudi Aramco would gain a greater market share.
Devya Dixit thanks.
KCBomber, anything else you wanna add? :P
Was at -40$ secs ago
No winner? My fuel is usually over $400 a month. Last month I’ve spent $60 on fuel at the pump. I’m winning🤑🙌🙏🏼
Anthony M so basically fuel prices drop 40% but your fuel expenses dropped 90% 🤔
Jay Noureddin Wife and I are now working from home. Not having to commute to work everyday , running the kids to there activities has saved us on our fuel consumption
Anthony M oh okay that makes sense then
Anthony M well then the majority of the savings isn’t from lower fuel prices, so you really haven’t benefitted much from the lower price but more from the stop in driving.
justin snider The way I see it, if I’m not having to shell out hundreds of dollars on fuel and I’m still employed earning an income working from home it’s savings in my wallet at the end of the day. I’m not losing anything by not using an absorbent amount of fuel. I call that a win in my book.
Tesla cars & Elon: “I call this a big win”
Yep
I don't think so. If oil price are low there will be no incentive to switch to eletric car and probably will have more people using petrol car. So i don't call this a win.
@@harveyfong7617 certainly not a win for electric. Oil price inevitably rises once virus problem over but that at least 6 more like 18 months
how is this a win for tesla? you don’t know what you’re talking about
Major Win for Electric cars Low oil prices means stop of production!
"there is no winner"
Long term investors : you sure bud?
I have nowhere to go yet I feel I wasted 4:17 minutes of my life by watching this video and learning nothing.
Ahaha that is soo true
Not sure why the wsj is showing Russia as owning Crimea
Me either. But it shows where their sympathy lies.
Because thats the de facto real world
It must be because it is a new map :p
I mean....
Maps should show de-facto sovereignty borders. Crimea is controlled by Russia. Taiwan is NOT controlled China, therefore map is correct.
Nice going WSJ adding Crimea as part of russia. I'm guessing you will do the same with Alaska as well.
@Adel Al Crimea was annexed in 2014 from Ukraine. I made that comment because Alaska was part of Russia before. So I just made a correlation that since Crimea was part of Russia and got annexed will WSJ do the same if Russia claims Alaska? That's what I meant.
Can you explain how do baltics area threat to Trump?
@Adel Al huh, so you basically joked about Balkans as part of Russia.
@@mchertonok Possible Chinese troll. More likely Russian troll. Dont waste your time arguing with them.
@@mchertonok Balkans are Not part of Russia but historically have been considered part of the Russian sphere of influence. As it should be.
@@TheShootist Why should it be under Russian influence?
Good !!...... I hate oil.
“Don’t drive your car then”
“Don’t use plastic” , etc, etc.
OK bring it on.
But its not a zero sum game. "Don't want to die of smoke inhalation in a fire just don't breath then dummy, duh"
Using oil to make fuel and using it to manufacture plastics aren’t to say thing .
Cheaper than water wouldn't be a good cause for ya
Fascinating, didn't think that'd be so up to date just 4 days later...
I drive a 18 wheeler in Georgia,Tennessee,SC and NC traffic is normal,even heavy at times!!
Gasoline is around $1.49 a gallon..:)
As I watch this video, one of those tankers with no place to unload sits a few miles out in the Gulf of Mexico pointed towards the pass into St. Andrews Bay and Panama City, Florida. I just checked. I can see its lights tonight, its position unchanged since this afternoon.
Why don’t u go scuba diving and steal some of the oil ?
Forefather Of Mankind, if that’s a joke, I don’t get it.
WOW. superb info. Keep it up.
Always read the comments. Thanks people. You saved me 4 odd minutes
This whole crisis has shown us just how powerful the consumer is! Let’s use that, now we see how we can control markets. When this is over only use companies that put us first and value for our dollar.
Thanks
Aaaah so oil prices fell. Cool. Thanks Wall Street Journal.
Knew this happen, told my friends OPEC would fail and oil would collapse a month ago....
Whats the problem? Alabama alone can crank up their old, 4x4, big v8, one ton pick'em-up trucks. Mudding can be done all day, well 2 days (its the weekend), and clear out some storage room.
April 20,2020
WTI plunged down to a record low of -$37.63 per barrel.
April 21, 2020.
Brent crude follows the suit with a $5 dive of its own
Why are US companies increasing production so much in the first place?
They explained that American companies had made huge loans to buy machinery and build pipes to distribute the oil. Therefore, to cover those loans, they can't afford to stop producing.
Well they say they had to pay off their debts in the video leaving them no choice. But let's be honest, oil companies are the richest corporations on earth and have been favored by governments for decades, I'm sure this wasn’t necessary.
turradaturra daturrada
Also, we don’t want to lose energy sector jobs in the US as the world petroleum tank to the lowest level in quarter century. Thanks partially to Trump. Trump 2020
@@Vishwanath924 Why do Trump fans need to be so moronic with their propaganda lol
@@turradaturra If American companies hold enough market-share to influence world prices so dramatically, wouldn't it be more profitable for them to keep prices high? Also, since the demand for oil is really low at the moment, what's the point of increasing production? It's just more costly for them to store surplus production they can't sell, isn't it?
While watching this video I found myself thinking; “gee, am I the only person not getting much from this video...?” Then I read all of the other comments! 😂 Glad I’m not alone!
Most of the major oil consuming countries ia going to say goodbye to combustion engines for use of passenger transport segment which includes car, bus and trucks.
Add surplus oil to the strategic oil reserves to take it off the market. New infrastructure for the supply would be necessary, but it may help.
Ya love to see it
Nobody feels bad for the oil companies or the OPEC countries- I understand that this has an effect on oil workers, but the amount of price fixing and collusion that leads to the illegal oil profiteering of foreign nations has been disgusting and wrong, and everyone has known about it, so how can we expect people to feel bad? Gas should never cost more than $2 a gallon anyway, and we should be taking the gas tax and putting it towards our own future energy infrastructure not propping up foreign countries.
I’d sincerely join the effort to make this an opportunity to boost the commodity of renewables. Honest. It’s prime time.
You need expensive oil and cheap renewables - the opposite is the case now.
What did the color difference on the map mean for the countries?
Is it Calgary AB in the first picture? Looks like it.
It did explain, people.
Supply > Demand hence lower prices.
So how will the market be reshaped? I don’t think that was touched on once in this video
Why is Crimea a part of Russia?
Russia annexed it and nobody said nothing, no? That's how geopolitics work nowadays. No visible contestation = endorsed by the media.
Oh you didn't get the memo ?
Cause no other nations troops can go near it without causing a war. You can put your head in the sand, but the fact remains true
Crimea is Russia.
NOW can we start investing in alternative energy sources?
So... what I learned from this is I missed an opportunity in oil futures. Again.
Well a few days early for a surprise, it just crashed -32
Wow
Anyone on here watching this after oil prices hit zero dollars today in the stock market it actually went below zero for a while
So, what I got out of this is that a bunch of countries were working together to artificially lower supply in order to price gouge when all of this went down. There was definitely a winner in this:
Mother Nature: 1
Oil Barons: 0
The opposite - countries and industry working to Boost supply in order to drive out competition. So using your analogy - Mother Nature just got raped for nothing.
Yes and now the price just went negative
Love
So would this be a good time to start electric vehicles again? Double down as they say?
People should start using alternative, cleaner energy sources.
Well this event could be a incentive for alternative fuel
Im just eating chips today
I found out that people with Tesla's (depending where they are) get charged an extra fee for driving electric. Why? State government needs to make money off of gas prices, so now they are charging electric drivers to compensate. Pretty much kills the meaning of making electric vehicles cheap you know.
Why is the WSJ acknowledging Russia's illegal annexation of Crimea?
April 21st 2020, the oil price has officially hit below $0
0:12 "factories are sitting idle"
US producers helped to exacerbate this problem. They hurt themselves
hope it get to 120 like in 2014
Propping up prices or price fixing?
Los Angeles highways never looked so good 😊
One explanation missing is the huge contango created between contracts, creating enormous selling pressure on the futures contract. Oil is a speculative asset, supply/demand is only one part of the explanation. I give more tech insight here if interested: ruclips.net/video/l76TKhLAlBY/видео.html
Our air quality in my town are at an all-time low level of pollution in the air. Air temperatures are very low in the air and the weather is like 1940.s
Oil price didn’t collapse, greed does.
if history is going to repeat, large scale wars coming
say no to oil...as consumers lets put the last nail on its coffin!
What strange times
Woah🤔
Weeee big line go down!
Why isn't the price of diesel dropping? I'm a OTR trucker and would like to know
More demand for diesel than gas.
So question it is good to buy oil stocks right now ?since it is cheap and it will get high again
0:45 is that malaysia
Looking forward to the oil bailouts.
You’ve included Crimea into Russia on a map. Just so you know. As for the video, i expected something more profound
I guess the planet got the last laugh. If you think about it, humans have no room in the food chain. None need us. Abd neither does the planet. So we better watch our actions. We need it. It dose not need us.
Icia Jay I don’t know what you’re talking about, I’m fricking awesomeeeeeee
and it's funny because it is a direct effect of our oil usage that is warming the planet and connecting us and making our lives easier.
so, let's continue doing it, so that humans go extinct faster. the planet will recover. ACCELERATE!
Wouldn't it
My country's economy is based off only upon oil, and since it's not selling (selling with lowest price) i think there is a severe crisis ahead of us. 2020 has been ruthless so far.
Can someone explain how prices can be negative, and what that means?
I buy oil I cannot store. Must pay for it not to be delivered. Last duck pays $37 a barrel NOT to take delivery.
Yes for mother nature. Yes yes yes
Today, on April 20th, 2020, Crude Oil Futures dropped over 100%. Many futures contracts reached a negative value. Today, oil has died
Now below $1
Wow, Part of Malaysia capital city Kuala Lumpur is shown at 0:44
Proud Malaysian moment
I predict in 3 months this historic dip will be all but forgotten as the price of oil steadily climbs back up to a more logical reality.
wonder how that ol DAPL is workin' out there.
To many were long wti. A few longs on brent and brent is still above 0.
It is just an example, what market makers are capable of. Can happen on any instrument and they qill always find an exuse.
Fix your map! Crimea is not part of Russia but Ukraine.
Бестолочи, что с них взять, географии не знают
now it’s back
There is a winner, the environment!!
until the bombing starts.
Simple supply and demand
So... what's your point? How does the video answer the title?
Why is Crimea in your map pictured as a Russian territory?
nobody cares enough by now to dispute this.
Nobody cares anymore and has in fact accepted the Russian annexation
The fact we still depending on and burning fossil fuels is sad. It’s time for change! Yes it will be hard but we can find alternatives. This could be a great thing! Many of us tired of the pollution clean living.
Why did the WSJ show Russian map including Crimea peninsula?
there is a winner. me... this is awesome. more gas for me.
3:07 Didn't know WSJ hired comedians 😂😂
At least we will know what will happen if the world stop depending on oil but with other alternatives in the future.
0:51 that’s Malaysia
'there's no winner in this current situation' he says... EARTH is the winner in this current situation!
0.45 Kuala Lumpur?
When we use geothermal energy nations will have independent energy capabilities and oil will be the past. No pollution all delivered from the centre of the earth's crust.
We also need fast breeder nuclear reactors.
Curtis Carpenter are you kidding me? You can't just build geothermal anywhere you want. It has to be available via cracks in the crust.
@@francisluglio6611
Most of the earth has hot rock fairly close to the surface. It has to be fractured and pumped with water for it to be productive. Look up "engineered geothermal resources".
Sounds like a win to me gas has been High for years