Tensions between Russia and Saudi Arabia, Coronavirus, increased production, decreased demand… The oil market has been hit hard by all these developments. The barrel price of West Texas (WTI) type oil, which fell more than 15%, is now under $ 12.
High School Students Don’t Really Remember
Many will not remember when the barrel oil price was so low last time. Because the price of barrel oil had dropped to such a low level in 1983.
In another article we shared today, we said that some manufacturers in North America sell oil for $ 2 a barrel. If the decline in oil prices continues, producers can even pay buyers to buy the oil they have.
If you currently have 1 Bitcoin, you can buy enough oil for a while. If we get the price of 1 Bitcoin at $ 7 thousand, this means that with 1 BTC, almost 620 barrels of crude oil can be bought. Of course, we don’t know what you can do with this much oil.
It is not possible to predict exactly when the oil market will recover. However, the necessary things for the recovery of the oil market are almost certain. Firstly, oil production needs to be rebalanced, OPEC + has already made a decision in this direction. In addition, in order for oil prices to rise above $ 50, oil use needs to go up to pre-coronavirus levels (how good is a discussion). But when this happens, of course we do not know.