Oil Prices Fall Into Negative Territory – April 2020
The oil industry experiences a major setback this week as demand remains low and prices decline. KTVU interviews Energy Institute Faculty Director Severin Borenstein, to discuss how this may impact companies and the economy.
“Professor Severin Borenstein, a renowned energy economist at the UC Berkeley Haas Graduate School of Business, says producers cannot get the oil to where it would be worth over $20 a barrel on the world market…’Oil traders believe that storage tanks in the Midwest are full or nearly full with no buyers in sight…and so, they don’t want to buy oil…It’s very likely that some of these companies will go bankrupt. But, if the price of oil were to go back up, they would start producing oil again'”.
Read more about Oil Prices in The San Diego Union Tribune and KPIX 5
Photo: pexels.com