Oil is going much lower


The equilibrium price of Brent oil is around $20/barrel. The only way to get oil back up is to get demand higher. Trump could buy up 3 billion barrels per day for example. This would quickly push up the price to $40/barrel.



Some say global oil demand is set to plunge by more than 10 percent from the
typical 100-million-bpd consumption, as the raging coronavirus pandemic
forces countries into lockdown. This is according to the world’s biggest
independent oil trader, Vitol. This would push the oil price to $3/barrel.



On top of that, Trump is not going to bailout oil producers by increasing strategic oil reserves. 











Update: China is now buying oil to prop up its oil reserves. This will push up oil prices.

Update 2: Trump is meeting with Saudi Arabia and Russia and we could see 10 million barrels production cuts.

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