In Russia, buyers from Europe should already be paid for buying the oil from the producer. The “Tages-Anzeiger” reports based on Russian media reports. A drop in prices could also occur in other regions.
At the beginning of this week, according to individual local reports, the delivery and freight costs including tariffs for oil from Western Siberia were said to be higher than the price paid for the delivery in Europe. The value of West Siberian crude is considered the leading brand for the entire Russian market.
A similar scenario is conceivable for Canada and the United States, analysts at the US investment bank Goldman Sachs now warn. They expect that oil prices there will also slide into the negative. In the case of Canada, it was still a matter of a few weeks. And in the US of a few months.
In Canada, a beer is already more expensive than a barrel of oil
The reason for the fall in prices is the global storage capacity in the oil sector. After all, even though the production limits agreed upon by the Opec and Russia oil cartels expired at the end of March and demand fell due to the corona pandemic, the oil-producing countries are continuing to produce happily.
After the Russian oil stocks are already bursting, Goldman analysts expect Canada and the United States to reach their storage capacities soon. For this reason, the price of the Western Canada Select oil has already dropped to $ 4.18 per barrel. A barrel (159 liters) of the oil is therefore more expensive than a large glass of Canadian beer.
Then why is production continued?
The operators would not shut down the production because the later resumption would be too expensive, writes the “Tages-Anzeiger”. In particular, the oil sources, which are located on the mainland and far from a sea port, allow operators to accept a negative oil price for a certain period of time.
In addition, the price slide is also noticeable in Switzerland. Petroleum products have been 10.1% cheaper since March 2019. According to the Federal Statistical Office, the price fell by 5.7 percent compared to February 2020.