Texas CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Oil Prices Slide into Negative Territory
The price on the May futures contract for West Texas Intermediate crude that is due to expire Tuesday fell into negative territory Monday at minus $37.63 a barrel, the Dallas Morning News reported.
With the COVID-19 pandemic bringing the economy to a standstill and demand for oil dropping by 30%, American energy companies are running out of room to store the unused oil.
Kumar Venkataraman, Maguire Chair in Energy Management at Southern Methodist University, said there will be much consolidation of the industry in Texas. Bud Weinstein, economist in SMU’s Maguire Energy Institute, said “demand for oil is not going to go down forever.
“Globally, oil demand will increase at least to 2040 and the industry will recover as demand comes back,” Weinstein said.
“The question is, ‘Will the U.S. still be the biggest oil producer?’ Weinstein said. “This isn’t good news for Texas, which represents 40% of U.S. production.”
For comments, questions or concerns, please contact Paul Bubny
- ◦Economy
