Connect with us

Coronavirus (Covid-19)

Oil prices tank, as crisis fuels calls to re-open economies

Published

 on 

And now a global oil crisis hits home as well. Oil prices have crashed into negative territory after global coronavirus-related travel restrictions impacted demand.

After addressing the early crisis with ‘lockdowns’ and social distancing, now the narrative pivots to lifting stay-at-home orders and re-opening economies. Some European countries have taken tentative steps to ease restrictions as coronavirus death rates start to fall in some nations. Even in the US the national rates of new infections continues to rise, although the rate is starting to show signs of flattening out.

Whilst government’s are trying to tackle the thorny questions of when and how to ease restrictions, there’s now been an unprecedented collapse of global oil prices, which traded in negative territory for the first time ever. The collapse will add further ‘fuel’ to the arguments for a quicker unshackling of the people’s lives and the global economy.

Whilst billions of people have been staying at home to help limit the spread of Covid-19, and oil producers Saudi Arabia and Russia in a price war, an oil glut has pushed US benchmark West Texas Intermediate for May delivery prices down to -$37.63 per barrel. Yes, that’s MINUS $37.63. That means the oil companies are paying you take away their barrels at the moment.

The move was so violent and shocking that many traders struggled to grasp the extent of the fall. But the negative prices also reveal a fundamental truth about the oil market in the age of coronavirus: The world’s most important commodity is quickly losing all value as chronic oversupply overwhelms the world’s crude tanks, pipelines and supertankers. No one is flying, few are driving their cars, the demand has dropped to a historic low.Oil prices tank, as crisis fuels calls to re-open economies | News by Thaiger

According to Bloomberg, the price collapse could redraw the global map of power as petrochemical states like Russia and Saudi Arabia, who have enjoyed a resurgence over the last 2 decades thanks to an oil windfall, see their influence diminished. Exxon Mobil, Royal Dutch Shell and other oil giants are ripping up business plans, desperate to preserve cash.

The Dow, chronically volatile for the past three months, closed down to 23,650.44 points or 2.4% on the back of the oil price crash.

The news emerges concurrently with protests in some US states where people marched over the weekend demanding that they be allowed to go back to work and return to their ‘freedoms’. This, despite a new survey that indicates most Americans oppose protests calling for an end to stay-at-home orders. The Yahoo News/YouGov poll published yesterday shows that 60% of Americans oppose the protesters while 22% support them, and 18% were unsure.

In Australia, authorities in Sydney have partially reopened three of the cities largest beaches while New Zealand announced it will ease a nationwide lockdown next week, with NZ PM Jacinda Ardern claiming… “We have stopped a wave of devastation.”

Around the world, there are now over 2,400,000 Covid-19 cases, 170,424 people have succumbed to the disease and over 646,000 have recovered. The US has been the hardest hit with 792,000+ cases and 42,514 deaths.

 

Get more from The Thaiger

Join the conversation and have your say on Thailand news published on The Thaiger.

Thaiger Talk is our new Thaiger Community where you can join the discussion on everything happening in Thailand right now.

Please note that articles are not posted to the forum instantly and can take up to 20 min before being visible. Click for more information and the Thaiger Talk Guidelines.

If you have story ideas, a restaurant to review, an event to cover or an issue to discuss, contact The Thaiger editorial staff.

Follow Thaiger by email:

Malaysia11 hours ago

Malaysian beauty salon gets makeover as dentistry school

Thailand12 hours ago

Northern floods tragedy – Monks unable to help

Tourism12 hours ago

Xi’s Bangkok APEC trip to open tourist floodgates

Pattaya13 hours ago

Police to curb Pattaya Beach drinking after student gun fight

Phuket14 hours ago

9th and 10th monkeypox infections found in Phuket

Coronavirus (Covid-19)15 hours ago

Face masks still required on public transport, in cinemas

Join the conversation on the Thaiger Talk forums today!
Cannabis News16 hours ago

Pattaya man attacked at gunpoint for selling cannabis

Crime16 hours ago

Police seize 60 suspects in online ‘ghost guns’ sting

Thailand16 hours ago

Bangkok Secret Nightlife – Bangkok Red Light District Secret Museum

Coronation17 hours ago

King Charles III debuts on UK coins

Politics1 day ago

Vladimir Putin officially annexed four parts of Ukraine

Transport1 day ago

Phuket Airport officials pulled tourist from van, insisted they use airport taxi

Thailand1 day ago

Thailand’s strange laws – 10 strange laws in Thailand

Politics1 day ago

The long goodbye – Which way now for PM Prayut?

Pattaya2 days ago

Pattaya Police Chief cleared of vice slurs, back on duty

Thailand1 year ago

Morning Top Stories Thailand | Police to end protests, Human Trafficking | September 14

Thailand2 years ago

Thailand News Today | Thai Airways in rehab, All go for Songkran | March 4

Tourism2 years ago

Phuket’s nightlife. Yes, bars and clubs are still open | VIDEO

Phuket2 years ago

Thailand News Today | Covid passport talks, Thai Airways heads to court | March 2

Tourism2 years ago

Phuket Thai food treats you need to try | VIDEO

Thailand2 years ago

Thailand News Today | Bars, pubs and restaurants ‘sort of’ back to normal | Feb 23

Tourism2 years ago

In search of Cat & Dog Cafés in Phuket Town | VIDEO

Thailand2 years ago

Thailand News Today | Gambling crackdown, Seafood market to reopen, Vlogger challenge | Jan 21

Thailand2 years ago

Thailand News Today | Covid testing for visas, Business impact, Vaccine approval | January 19

Thailand2 years ago

Thailand News Today | Weekend Bangkok bombs, Thailand fires, Covid update | January 18

Thailand2 years ago

Thailand News Today | Stray car on runway, Indonesian quake, 300 baht tourist fee | January 15

Thailand2 years ago

Thailand News Today | Governor off respirator, sex-trafficking arrest, condo prices falling | January 14

Thailand2 years ago

Thailand News Today | Chinese vaccine, Thailand ‘drug hub’, Covid update | January 13

Thailand2 years ago

Thailand News Today | Bangkok may ease restrictions, Phuket bar curfew, Vaccine roll out | January 12

Thailand2 years ago

Thailand News Today | Covid latest, Cockfights closed down, Bryde’s Whale beached | January 11

Trending