"The global oil market has been hammered this month by an economic slowdown and a price war between major producers Saudi Arabia and Russia. Canada’s storage situation mirrors that across the continent. U.S. crude prices are down 60 per cent since the start of the year, and West Texas Intermediate (WTI) settled at US$24.49 a barrel on Wednesday. Western Canada Select heavy oil blend was priced at US$8.84 a barrel, according to NE2 Group.
With economic pain spreading, U.S. Secretary of State Mike Pompeo urged Saudi Crown Prince Mohammed bin Salman on Tuesday to “rise to the occasion” and bring stability back to oil and financial markets that are reeling because of the novel coronavirus and resulting pandemic."
It would certainly make sense to pressure the Saudis to stop dumping oil as they are, which is hurting badly producers here in North America and elsewhere. Excessive production, at a time when demand collapsed.
Soon many small players will be broke. Canadian heavy oil at 9 USD per barrel?? US fracking can't be economical at the current WTI level either.
