The panel will analyze the impact of Covid-19 on North American oil and natural gas markets, which have been hit especially hard by the virus and lockdown response. On Monday April 20th prices for the NYMEX futures contract for May deliveries of West Texas Intermediate (WTI) crude oil at Cushing, Oklahoma went negative, reaching a low point of -$40.32 per barrel. The contract was due to expire the next day, which would have forced traders with open buy positions to accept delivery of oil with no available storage capacity. The panel will review the reasons for negative pricing. Critically, will the scene repeat itself when the June crude oil contract expires? Or, will enough oil be shut in or stored to bring the market into balance and avoid another round of negative prices? How will reduced oil demand and supply impact the U.S. import-export balance?
Natural gas markets have, so far, avoided the turmoil experienced by the oil market. However, demand has dropped, and the market too is in surplus, with spot prices well below $2 per million Btu. Will reduced oil drilling have longer-term consequences for gas supplies? How will declining power demand impact gas-fired generation? What will be the consequences for LNG exports?
Sam Van Vactor Economic Insight, Moderator.
Jeffery Currie, Goldman Sachs, global head of Commodity Research, Speaker.
Ronald Ripple, R.D. Ripple and Associates, Speaker.
Les Deman, Principal of Les Deman Energy Consulting Company, Speaker.