Such is the condition of commodity / crude that some producers of America are giving money to customers for carrying oil

·      In mid-March, Mercuria Energy Group asked producers for money to carry crude

·      Crude demand has come down due to lockdown to stop coronavirus

The Economic News: In some places in the US, the price of crude oil has gone negative. This means that the company is paying consumers to carry oil. That is, companies are saying take oil as well and take the money from our side to do the favor of carrying oil. Among the crude categories in which this condition has occurred, the first name is Wyoming Asphalt Sea. It is very thick oil. It is mostly used in laying bitumen. Mercury Energy Group Ltd., a trading company, bid a negative 19 cents for this crude in mid-March. This effectively means that he told the producer that they needed the money to carry their product.








Some crude prices went into negative territory due to lack of storage

An analyst at consulting company ESAI said that these are landlocked crude with no buyers. Areas in which storage is rapidly filling up. There, the price can quickly go into negative range. After this companies can close their business. These days the most popular Brent crude and West Texas Intermediate worldwide are trading at around $ 20 per barrel. But where the actual purchase of a barrel of oil is sold, the price is much less. Because of the lockdown to prevent the spread of coronaviruses, the demand for oil has reduced considerably.











Refiners have reduced the level of crude processing, leading to over-supply


Oil traders are of the view that other crude categories will also soon reach a negative range at production sites. Because refinery companies have reduced the level of crude processing. Due to this demand has come down and production companies are unable to supply their crude.








Many crude trades below $ 10


Some crude in North America is trading at less than $ 10. Canadian Western Select sold on Friday at $ 5.06 a barrel. Gulf of Mexico Southern Green Canyon sold at $ 11.51 per barrel. Okahama Seaver is trading at $ 5.75. Nebraska Interim Diet is trading at 8 barrels. Wyoming Sweet is trading at $ 3 a barrel. +