American and European refiners rejecting ot accept oil of Saudi Arabia even at discount prices. As the storage is full a crude glut set the price of WTI to 20,15USD/barrel and Brent to 22,80USD/barrel. India‘s demand is also decreasing as it has to shut down the industry to counter Corona epedemy. 52 Indian ports have invoked a force majeure amid the outbreak, allowing them to cancel orders without incurring penalties.
The decline of EU oil imports will be partial compensate from Russia, side tracking sanktions linking the trade route over China while China itself has a rebound of it‘s economy as there are no new Cornona infections. So the demand of fresh oil in China will start. That will support Russia and the OPEC demand of control the oil production and this will lead to rising oil prices.
USA was one of the biggest oil exporters of the world, temporarily the biggest. The USA has evicted the debt threshold in its budget. The state debt of the USA is rising dramatically. So the US government don’t feed the Web-Site https://www.usdebtclock.org with the acztual numbers.
At https://fsapps.fiscal.treasury.gov/dts/files/20032600.pdf you can find the amount of $23,514,802 mio$ of Total Public Debt Outstanding. The budget for 2020 is
With prices at 20-30$/barrel the USA can‘t produce its fracking oil, because the costs would be higher than the revenue. USA needs urgently higher oil prices to finance it‘s budget with the preoceeds of it‘s oil business. This applies especially to the WTI oil market as Western Texas Intermdiate refers to the high quality US oil market. The US oil storage shows a demand of 1,250mio barrels. That means that the storage is not full despite the record low in oil prices.
Moody’s, meanwhile, says it expects prices to stabilize to $40-$55 a barrel for the year 2020, and grow to $50-$55 a barrel in 2021 pending a resumption in global economic growth.