Bei ya pipa la mafuta ghafi nchini Marekani yashuka na kufikia chini ya $0

RRONDO

RRONDO

JF-Expert Member
Jan 3, 2010
51,719
107,835
Naangalia CNN naona bei ya Crude Oil USA imeshuka chini ya $0 actually ni $-37! Hii inakuwaje?

Kwanini tusinunue mafuta kutoka USA?
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Oil is now cheaper than a cup of coffee as the market plummets.

For the first time ever, oil prices fell below zero on Monday, marking a historic new low for the fossil fuel. Oil prices have been falling since the beginning of the year and the onset of the coronavirus pandemic, but the April 20 price collapse is new, deeply uncharted territory. Some crude oil stocks dropped to about $40 below zero.

The coronavirus crisis has dramatically reduced fossil fuel usage around the world, causing prices to plummet and for storage tanks to fill up with unused oil. For the broader economy, it’s ravaged the stock market. Tens of millions of Americans have filed for unemployment.

As described by Bloomberg Business, the pandemic, plus a gradual breakdown in international petroleum agreements, led the oil market to plunge into this “unprecedented wipeout.” As Bloomberg reporters put it: “With no end in sight, and producers around the world continuing to pump, that’s causing a fire-sale among traders who don’t have access to storage.”

Some producers have been cutting back already — 13% of the American drilling fleet was shut down last week, according to Bloomberg. The head of commodities at banking and financial services company Standard Chartered told Bloomberg News that production cuts aren’t happening fast enough to avoid a surplus.

“People are trying to get rid of the oil and there are no buyers,” said Michael Lynch, president of the Strategic Energy and Economic Research group, to Bloomberg.

People were shocked on Monday to see prices per barrel fall from $12 to $4 to then $2, tweeting about how a cup of coffee or a roll of toilet paper were worth more than a barrel of crude oil. Before prices fell into negative territory, energy experts were cautioning people to look at the big picture:

A few days ago, President Trump credited himself with saving the oil industry, saying he had negotiated “maybe the biggest oil deal ever made.” Stocks closed down over 500 points on Monday as oil prices collapsed.

Climate advocates have called on the U.S. to take advantage of the crisis to make a fundamental shift to clean energy, but Trump and congressional Republicans have said they plan to push for a fossil fuel industry taxpayer bailout.

Source: Now This

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Shark said:
Kwamba Bei yake ni-ve? Means mnunuzi ndio unalipwa badala ya kulipa? Embu weka link au screenshot ya hiyo article tuangalie tunaanzia wapi
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Ndio nauliza wachumi hapa.
 
October man said:
1). Demand imeungua.

2). kuhifadhi crude oil ni more expensive, so ni bora kuyauza katika lowest price/kusukuma mzigo

Saudi Arabia and Russian the big supplier wanapanga kukata uzalishaji wa atleast 7.8 million per barrel kuanzia mwezi mei.

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Nasikiliza hapa wanasema world will run out of places to store oil barrels!
 
Kwa mara ya kwanza tangu biashara ya mafuta ianze, bei ya mafuta imeshuka na kupita chini ya $0.

Nchini Marekani makampuni ya kuzalisha mafuta yanawalipa wanunuaji ili waweze kuchukua mafuta. Maana uzalishaji umekuwa mkubwa kupita mahitaji.

Hii imesababishwa na shughuli nyingi za kiuchumi kufugwa. Viwanda havizalishi na magari hayatembei barabarani. Kufuatia janga la Corona linaloendelea kuitesa dunia.

Bei ya galoni moja ya mafuta imefikia chini ya dola moja na hakuna wateja.

Vituo vya mafuta havina wateja

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Oil is now cheaper than a cup of coffee as the market plummets.

For the first time ever, oil prices fell below zero on Monday, marking a historic new low for the fossil fuel. Oil prices have been falling since the beginning of the year and the onset of the coronavirus pandemic, but the April 20 price collapse is new, deeply uncharted territory. Some crude oil stocks dropped to about $40 below zero.

The coronavirus crisis has dramatically reduced fossil fuel usage around the world, causing prices to plummet and for storage tanks to fill up with unused oil. For the broader economy, it’s ravaged the stock market. Tens of millions of Americans have filed for unemployment.

As described by Bloomberg Business, the pandemic, plus a gradual breakdown in international petroleum agreements, led the oil market to plunge into this “unprecedented wipeout.” As Bloomberg reporters put it: “With no end in sight, and producers around the world continuing to pump, that’s causing a fire-sale among traders who don’t have access to storage.”

Some producers have been cutting back already — 13% of the American drilling fleet was shut down last week, according to Bloomberg. The head of commodities at banking and financial services company Standard Chartered told Bloomberg News that production cuts aren’t happening fast enough to avoid a surplus.

“People are trying to get rid of the oil and there are no buyers,” said Michael Lynch, president of the Strategic Energy and Economic Research group, to Bloomberg.

People were shocked on Monday to see prices per barrel fall from $12 to $4 to then $2, tweeting about how a cup of coffee or a roll of toilet paper were worth more than a barrel of crude oil. Before prices fell into negative territory, energy experts were cautioning people to look at the big picture:

A few days ago, President Trump credited himself with saving the oil industry, saying he had negotiated “maybe the biggest oil deal ever made.” Stocks closed down over 500 points on Monday as oil prices collapsed.

Climate advocates have called on the U.S. to take advantage of the crisis to make a fundamental shift to clean energy, but Trump and congressional Republicans have said they plan to push for a fossil fuel industry taxpayer bailout.

Source: Now This

Sent using Jamii Forums mobile app
 
US oil prices turn negative as demand dries up
  • Oil pumps

The price of US oil has turned negative for the first time in history.

That means oil producers are paying buyers to take the commodity off their hands over fears that storage capacity could run out in May.

Demand for oil has all but dried up as lockdowns across the world have kept people inside.
As a result, oil firms have resorted to renting tankers to store the surplus supply and that has forced the price of US oil into negative territory.

The price of a barrel of West Texas Intermediate (WTI), the benchmark for US oil, fell as low as minus $37.63 a barrel.

"This is off-the-charts wacky," said Stewart Glickman, an energy equity analyst at CFRA Research. "The demand shock was so massive that it's overwhelmed anything that people could have expected."

The severe drop on Monday was driven in part by a technicality of the global oil market. Oil is traded on its future price and May futures contracts are due to expire on Tuesday. Traders were keen to offload those holdings to avoid having to take delivery of the oil and incur storage costs.

Oil price chart from 2000 to 2020


June prices for WTI were also down, but trading at above $20 per barrel. Meanwhile, Brent Crude - the benchmark used by Europe and the rest of the world, which is already trading based on June contracts - was also weaker, down 8.9% at less than $26 a barrel.

Mr Glickman said the historic reversal in pricing was a reminder of the strains facing the oil market and warned that June prices could also fall, if lockdowns remain in place. "I'm really not optimistic about the prospects for oil companies or oil prices," he said.

OGUK, the business lobby for the UK's offshore oil and gas sector, said the negative price of US oil would affect firms operating in the North Sea.

"The dynamics of this US market are different from those directly driving UK produced Brent but we will not escape the impact," said OGUK boss Deirdre Michie.

"Ours is not just a trading market; every penny lost spells more uncertainty over jobs," she said.

The oil industry has been struggling with both tumbling demand and in-fighting among producers about reducing output.
Earlier this month, Opec members and its allies finally agreed a record deal to slash global output by about 10%. The deal was the largest cut in oil production ever to have been agreed.

But many analysts say the cuts were not big enough to make a difference.

"It hasn't taken long for the market to recognise that the Opec+ deal will not, in its present form, be enough to balance oil markets," said Stephen Innes, chief global market strategist at Axicorp.

Analysis box by Andrew Walker, Economics correspondent


The leading exporters - Opec and allies such as Russia - have already agreed to cut production by a record amount.
In the United States and elsewhere, oil-producing businesses have made commercial decisions to cut output. But still the world has more crude oil than it can use.

And it's not just about whether we can use it. It's also about whether we can store it until the lockdowns are eased enough to generate some additional demand for oil products.

Capacity is filling fast on land and at sea. As that process continues it's likely to bear down further on prices.

It will take a recovery in demand to really turn the market round and that will depend on how the health crisis unfolds.
There will be further supply cuts as private sector producers respond to the low prices, but it's hard to see that being on a sufficient scale to have a fundamental impact on the market.

For US drivers, the decline in oil prices - which have fallen by about two-thirds since the start of the year - has had an impact at the pumps, albeit not as dramatic as Monday's decline might suggest.

"The silver lining is, if you for various reason actually need to be on the roads, you're filling up for far less than you would have been even four months ago," Mr Glickman said. "The problem for most of us is even if you could fill up, where are you going to go?"

US President Donald Trump has said the government will buy oil for the country's national reserve. But concern continues to mount that storage facilities in the US will run out of capacity, with stockpiles at Cushing, the main delivery point in the US for oil, rising almost 50% since the start of March, according to ANZ Bank.

Mr Innes said: "It's a dump at all cost as no one, and I mean no one, wants delivery of oil with Cushing storage facilities filling by the minute."
 
heradius12 said:
Usa huwa anareserve kubwa ya nafuta inayomsaidia kustablize bei ya mafta. Inawezekana ameamua kushusha bei kwutokana na hali ya uchumi. Pia kumbuka consumption au demand ya mafta imeshuka hivyo bei laxma zishuke

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Sababu kubwa ni kwamba storage zimejaa hawana nafasi ya kuhifadhi hayo mafuta hivo wapo tayari kuyatoa bure kwa traders.

Mitambo bado ina pump mafuta, na ni ngumu kuzima ile mitambo maana gharama yake ni kubwa ili kuiwasha tena.

Hivo kilichobaki ni kuendelea na production huku wakiyagawa bure.
Hili ndilo ninalolijua.
 
Paula Paul said:
Sababu kubwa ni kwamba storage zimejaa hawana nafasi ya kuhifadhi hayo mafuta hivo wapo tayari kuyatoa bure kwa traders.

Mitambo bado ina pump mafuta, na ni ngumu kuzima ile mitambo maana gharama yake ni kubwa ili kuiwasha tena.

Hivo kilichobaki ni kuendelea na production huku wakiyagawa bure.
Hili ndilo ninalolijua.
Click to expand...
Youre absolutely correct.



1/ Fall in demand DUE to

2/Covid19 eruption

3/Overproction while there's no more a demand

4/ No more storage tanks. (Flooded)
 
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