April 18, 2021 – CBC
One year after crude turned negative, oilpatch relishes first-quarter profit outlook
The Canadian Press
On April 20, 2020, the U.S. benchmark West Texas Intermediate near-month contract price ended the day down a whopping $55.90 US at an unprecedented -$37.63 per barrel.
The negative close was caused by a mix of technical commodities market factors and concerns about oversupply as storage tanks grew dangerously close to full amid a collapse in demand fuelled by pandemic lockdowns and short-lived price war between Saudi Arabia and Russia, said senior commodity analyst Martin King of RBN Energy in Calgary.
"Everyone was very, very negative on oil and oil demand," he recalled in an interview, adding the remarkable level of stabilization since shows how resilient the oilpatch can be.
"So the market essentially wound up balancing itself out and we had a recovery from the depths of hell to not quite to heaven in terms of current prices, but certainly a very large scale recovery.
Read the full article here: https://www.cbc.ca/news/canada/calgary/oilpatch-first-quarter-1.5992616