The oil markets are on edge with oil sinking into the $20s per barrel. And last week we reportedon one place where oil is already trading in the single digits. Canada’s bitumen is selling for just $8 a barrel.
But even that rock-bottom price is higher than what one oil seller earned for a shipment recently. In a bizarre turn of events, Bloomberg reported that Flint Hill Resources, a refining unit owned by the Koch brothers, said that they would purchase sour crude from North Dakota for -$0.50 per barrel.
That’s right: a negative price. Oil has become so depressed that producers are paying buyers to take oil off of their hands.
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I'm no economist by any stretch of the imagination but, it would seem to me that depressed oil prices would be a good thing for the world economy. Why's it being played the opposite way?
ReplyDeleteWhere do I sign up to purchase oil at these prices?
ReplyDeleteWhere can I buy some.
ReplyDeleteThe Saudi's are over producing oil in hopes of killing the Fracking industry.
ReplyDelete