With the price of crude oil collapsing to -$42 a barrel today, Ole Hansen at Saxo Bank and legend Pierre Lassonde weighed in on the carnage in crude oil.
OIL PRICE COLLAPSE: ‘What The F*ck?’
April 20 (King World News) – When asked about today’s historic collapse in the price of crude oil, Ole Hansen, Head of Commodity Strategy at Saxo Bank, told King World News: “I was walking on the beach with a glass of wine and when I got back to my computer screen I said, ‘What the f*ck?’ The oil price had collapsed under $10 and the collapse accelerated from there hitting (negative) -$40+ a barrel at one point in panicked trading.
The fact that the price of crude oil went to -$40+ a barrel is a sign of the extreme level of stress in the system. Because when you don’t have a physical oil trader to say, ‘I’ll have those (contracts) because I have storage and I’ll make a killing. It’s the deal of the century,’ I mean they would be buying oil at -$40 and selling it at $20 one month out. Those kinds of trades don’t come around, ever. And yet no one can take advantage of it because no one has storage capacity to take advantage of the trade. So this was not a good day for the oil market and not a good day for the CME either because it’s not a situation they want to find themselves in.
And there is no question that we are in crisis mode now for US oil companies. From a producer perspective, today was a very scary day. Many of these companies that are heavily indebted are on the edge and may go bankrupt. And with regards to the oil price collapse, I am just worried that what happened today will happen again in 4 weeks time unless we see a very big shift in the market in terms of oil production and demand.”
Lassonde On The Carnage In Crude Oil
When legend Pierre Lassonde was asked about the carnage in the crude oil market he responded, “This is history in the making! Absolutely incredible! We will never see this again EVER! Imagine the world of pain that this creates for the US oil business, and the hundreds of thousands employed in that sector. No one would have ever believed that they would pay to take their oil! But look at natural gas going higher. Less shale oils means higher natural gas prices!”
“This Is A Colossal Economic Tragedy”
Derek Brower, US Energy Editor at the FT: “This crash is going to destroy so many livelihoods and so many jobs. Whatever anyone thinks about the oil sector — and there many obvious reasons why the world needs to reduce oil use — this is a colossal economic tragedy in the making right now.”
Pierre Lassonde – This Global Collapse Is Like 100 Black Swans
***Also Released: Legend Pierre Lassonde Just Warned This Global Collapse Is Like 100 Black Swans All At Once CLICK HERE.
***To listen to one of Alasdair Macleod’s most important audio interviews ever where he discusses the perfect storm in the gold market and why “this time the situation is infinitely worse” CLICK HERE OR ON THE IMAGE BELOW.
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