Why crude has been hit hard February 2020!(Coronavirus & Oil)...
Wael Al-Habbash
Your project is underway, faster, and with industry-leading expertise from day one, with a road map that charts a successful path.
1.Coronavirus in China and travel restrictions in place. as a result, factories, offices and shops remain shut. That means the world's biggest importer of crude oil, which usually consumes about 14 million barrels a day, needs a lot less oil to power machinery, fuel vehicles, and keep the lights on.The outbreak is likely to have a particularly large impact on demand for jet fuel as airlines around the world suspend flights to China, and travel restrictions within the country mean far fewer flights.
2.In such a large amount of oil is necessary to nobody. Supply exceeds demand.China's daily crude consumption had slumped by 20%, the equivalent of the UK and Italy's oil needs combined.In response, Asia's largest oil refiner Sinopec, which is owned by the Chinese government, has cut the amount of crude it is processing by about 600,000 barrels per day, or 12%, its biggest cut in more than a decade.
3.Transition to electricity & Renewable Energy.Dropping prices for solar and wind, along with new battery technologies and growing use of electric cars, will create a dramatic shift in demand for oil and gas.
4. Shale oil- another attempt at manipulation. oil has been under pressure earlier this week (06) from Monday, February 3, 2020 until (and including) Sunday, February 9, 2020.
We are probably stuck in the $48 to $64 range for the foreseeable future of the oil February & March 2020.
Please give me your thoughts or comments on this.
#waelalhabbash #?????? #oilandgas