It started in mid-February for jet fuel and in mid-March for gasoline.
While everyone is watching the meltdown in the crude oil market, the global market for natural gas is also cratering.
The US Energy Information Agency (EIA) dissects the historic event.
“With such rapid decline in fracking already visible, very little activity will be happening in the oil basins during the remainder of Q2.
Meanwhile this is a moment for historic reflection and head-shaking.
West Texas Intermediate (WTI) futures collapsed 45% today from the already collapsed price, to $10 a barrel, lowest since 1999.
The sudden declines in production illustrates the fatal flaw in the shale business model.
Economic powerhouse Texas first got hit by the Oil Bust then by the Coronavirus. Expect similar confluence of unrelated factors in other regions.
Shares of shale oil drillers collapsed by 25%-50% today. Their bonds got massacred. Saudi-Russia price-war strategy appears successful in wiping out investors in the US shale-oil sector.
Crude Oil Collapses 32%, US Stock Futures Plunge nearly 5%, 10-year Treasury Yield Gets Closer to 0%, Gold Jumps to $1,700, Asian Stocks Plunge, Nikkei -6%.