Witness history over again!US oil price fell to negative, which causes OCTG factories’ existence crisis!
Eastern time on Monday, April 20., WTI crude oil futures in May fell from $10 to $1 without stop to a psychological barrier, and fell to a negative value less than half an hour before the close, then fell to -$43 per barrel near the close, finally closed at -$37.63 per barrel. Compared to the last trading day last Friday, it has fallen $55.90 per barrel which is a drop of 305.97%. This is the first time in history of New York oil prices closed negative.
"OPEC +" formed by the Organization of Petroleum Exporting Countries and Russia and other countries reached an "epic" production reduction agreement late in the evening of Easter. Even if the deal is unprecedented in scale, the market still doesn't believe it will be able to support crude prices.
This will undoubtedly make things worse for OCTG factories which are already short of new orders. OCTG factories around the world will face an existential crisis.At present, several Chinese OCTG factory leaders said that the orders of oil casing and tubing are very limited. Even if there are orders, OCTG factories are worried that the terminal petroleum companies would cancel the orders at any time during the production process, which brings uncontrollable risks to their production.
All hope replies on the end of Covid-19 in worldwide countries, and increase of crude oil price that comes along with market recovery.