Energy & Science
The Next Chapter of the Oil Crisis: The Industry Shuts Down
- U.S. output set to drop significantly after negative prices
- Oil refiners to curtail processing as fuel demand remains weak
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Negative oil prices, ships dawdling at sea with unwanted cargoes, and traders getting creative about where to stash oil. The next chapter in the oil crisis is now inevitable: great swathes of the petroleum industry are about to start shutting down.
The economic impact of the coronavirus has ripped through the oil industry in dramatic phases. First it destroyed demand as lockdowns shut factories and kept drivers at home. Then storage started filling up and traders resorted to ocean-going tankers to store crude in the hope of better prices ahead.