Oil Industry Braces for Biggest Idling of Wells in 35 Years
- As virus hits demand, the global glut is too big to store
- Producers are already reducing output and more cuts are coming
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Only the old hands at the Coffeyville oil refinery could remember anything like the prices posted this month. The small Kansas plant in the heart of rural America was offering just $1.75 a barrel for Wyoming sweet crude.
With more than two billion people on virus lockdown from India to California, energy demand has plunged. In corners of the U.S., Canada, Russia and China, oil prices at the well-head are collapsing under the weight of an unprecedented glut.