The price of US crude falls to the lowest level in 21 years – quite seriously, the economist estimates.
A vicious combination of a marked decline in oil demand and a fear that the United States could run out of oil storage capacity within a few weeks has sent the price of a barrel of US crude oil to its lowest level in 21 years.
That means the price has dropped to under $ 15, which is more than a half since March.
It writes several international media including the Reuters news agency.
And there is no doubt that this development should make the alarm bells ring, says senior analyst at Danske Bank Jens Nærvig Pedersen.
This price means that it is no longer worthwhile to produce oil to the same extent as so far in the US. It’s pretty serious, he says, and continues:
When oil prices fall, it is initially a question of how much the oil companies make. But when the price of oil falls to a certain level, the question is whether it is worthwhile to maintain the level of production. And that pain point we have reached for some oil producers now, says Jens Nærvig Pedersen.