US oil prices fell below $0 per barrel this month, a record low brought about by reduced demand combined with limited ability of producers to store excess. Other oil-producing countries, including Saudi Arabia and Russia, have made a deal agreeing to the deepest production cut ever negotiated, which still isn’t expected to resolve excess supply.
So what?
Will the reduced profitability of oil creates a greater incentive to invest in cleaner or renewable energy? Or, will low prices discourage the investment in fossil-fuel alternatives and slow the transition to clean or renewable energy.
Signal spotter: Alisha Bhagat
Photo by sippakorn yamkasikorn on Unsplash
Sources
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Premarket stocks: WTI crashes below $0 a barrel -- a record low https://www.cnn.com/2020/04/20/investing/premarket-stocks-trading/index.html -
Will the coronavirus kill the oil industry and help save the climate? http://www.theguardian.com/environment/2020/apr/01/the-fossil-fuel-industry-is-broken-will-a-cleaner-climate-be-the-result
