The tragic — and totally avoidable — self-destruction of one of the world’s richest oil economies.
NEW YORK (BLOOMBERG) – The day started like any other gloomy Monday in the oil market’s worst crisis in a generation. It ended with prices falling below zero for the first time in history, thrusting markets into a parallel universe where traders were willing to pay US$40 a barrel just to get somebody to take crude off their hands.
Oil has dropped to a twenty-one-year low today. Bears are out for blood. The WTI West Texas Crude Oil dropped over 18% today and reached a low of $14.45, a price level that has surprised traders. The steep fall in price is due to the lack of sufficient demand and lack of storage given that the production cut has failed to address the supply glut. There is a strong possibility that WTI Crude Oil prices will drop to $10. Yes, I mean $10! And, here is why.