Your Opinion Is Now Worth More Than a Barrel of Oil

While OPEC member states and other oil-producing counties have signed a pact to stem the flow of crude by 10 million barrels a day and hopefully rein in the current price-crashing glut, the situation remains bleak for oil producers around the world. On Monday, May futures for West Texas Intermediate (WTI) dropped to the floor, with prices hitting $5 per barrel.

That number shifted into the negative* as the above paragraph was being written. We’re guessing that’s because the end of the May contract forces physical receipts at a time when storage capacities are basically nonexistent. June WTI prices are still riding just below $23 per barrel.

Meanwhile, Brent Crude is hovering around $26 bbl as the OPEC Basket hangs onto $17.73 bbl on a 4-day delay. The assumption is that both will come down, though perhaps not as dramatically as WTI did.

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Global Oil Producers to Hold Emergency Meetings This Week

The world’s largest oil producers are meeting this week for negotiations aimed at saving the energy sector a lot of hardship further down the road. That includes the Organization of the Petroleum Exporting Countries (OPEC), which has been at odds with itself more than usual of late. Hampered by dwindling demand, member countries are suffering and aren’t sure what’s to be done about last month’s price plunge and surplus of crude.

During the cartel’s last meeting, Russia declined to collaborate with OPEC’s planned production cuts. This sent Saudi Arabia into a furious tizzy; it quickly attempted to flood the market with bargain oil in an attempt to drive out lesser players. Like everything else, this was further complicated by the global pandemic. The coronavirus has suppressed oil use to a point where suppliers are growing concerned about storage capacity running out.

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OPEC Infighting and Coronavirus Adds Up to Affordable Gas

With the coronavirus keeping people indoors and shale drilling keeping U.S. oil prices relatively stable, you’ve probably noticed gasoline bills being quite reasonable of late. Well, don’t get used to the sums you’re paying now, as analysts project fuel prices will drop even lower as 2020 progresses. While you might think this is due to national quarantines and lessened demand, you’d only be half right.

Last week, the Organization of the Petroleum Exporting Countries (OPEC) failed to strike a deal that would have enacted production cuts to better stabilize the market. Instead of slashing output, Saudi Arabia started slashing prices as it sought ways to ramp up production. Russia immediately responded by promising to increase its own output, leading to what looks like an all-out price war.

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  • 3SpeedAutomatic "...to make room for reality TV reruns..."What an insult!! Shows how far broadcast TV will stoop for a few extra bucks.I much appreciate Jay for keeping the "motor head" world alive in a Zoom society. However, maybe it's time for him to retire or semi-retire. There's enough material for him to do YouTube with most auto related companies willing to underwrite....but the number of shows would be at his own pace.I wish him well!!
  • Gregtwelve I had an '88 Turbo Coupe with 5 spd bought used and really liked it. I loved the looks, it had decent power for the time and a nice interior. Unfortunately the head gasket went at around 60K miles. I repaired it myself and sold it.
  • Mattwc1 I bought a Maverick specifically because I wanted utility and great fuel economy. My wife has a RAV4 hybrid that we really like. I think Toyota would print money with a smaller RAV4 based truck.
  • Varezhka Dunno. Looking at Maverick and Santa Cruz, having the engine in the front of the driver and a crew cab layout will mean the rear bed will be about the same size as kei trucks. And it will still be more than 16ft long. I'd rather get a Tacoma and/or a Hilux at that point.If we actually want a small truck with usable bed, it will have to be cab over layout with standard cab like Toyota TownAce Truck. We already know how popular that would be, even without getting into federal safety requirements.
  • SCE to AUX "Its militaristic, drab fortress presence, is some sort of reflection of the times."Very insightful comment in your excellent summary. The Cybertruck vs Hummer EV comparison tests will be enjoyable, sure to enflame their fans.