Crude Oil Storage Facilities Running Out. Prices May Turn Negative for Producers

An aerial view of a crude oil storage facility of Caspian Pipeline Consortium (CPC) in the Krasnodar Territory. Vitaly Timkiv / TASS / Getty Images Oil rigs around the world keep pulling crude oil out of the ground, but the global pandemic has sent shockwaves into the market. The supply is up, but demand has plummeted now that industry has ground to a halt, highways are empty, and airplanes are parked in hangars. It means that storage space for crude is starting to run out, both onshore and offshore, according to CNBC . As CNN reported , the supply glut has driven the price of oil to 18-year-lows. The need to get rid of it has grown so bad that some producers are paying customers to take it off their hands, according to Yahoo! Finance . In fact, in Canada, an entire barrel of crude oil is less expensive than a $5 pint of beer, according to another story from CNBC . A barrel of Western Canada Select oil was listed as $4.18 earlier this week. That precipitous drop in the price may make it more economical for producers to shutdown operations than to see the prices dip into […]

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