April 21, 2020 – North Shore News
Plunging oil prices point to 'deep collapse' in sector, drilling firm CEO warns
By The Canadian Press
CALGARY — The CEO of one of Canada's largest drilling rig contractors says plunging North American crude prices on Monday and Tuesday are signs that the oil industry is headed for a "deep, deep collapse."
On Tuesday, U.S. benchmark West Texas Intermediate oil future contracts for June delivery settled at US$11.57 per barrel, down US$8.86. With Monday's decline, the price is down more than 57 per cent in just two days.
Read the full article here: https://www.nsnews.com/plunging-oil-prices-point-to-deep-collapse-in-sector-drilling-firm-ceo-warns-1.24121717
Crude oil traders are starting to realize that if storage is full in May, it's probably going to be just as tight in June, said senior analyst Martin King of RBN Energy, commenting on Tuesday's oil market activity.
"Essentially, the demand has fallen faster than the supply. It's piling up either in storage at the refineries or in big tank farms," he said.
Oil production in Western Canada will likely fall by at least one million barrels per day and possibly as much as two million bpd as producers cut back where they can to avoid low prices, he said.
