The unprecedented plunge in U.S. West Texas Intermediate (WTI) crude oil price on Monday to $ -40.32 a barrel for May futures is not a true reflection of the state of the global oil industry, which has been badly hit by the “massive demand destruction” caused by the COVID-19 infections, says global energy expert Narendra Taneja.“This was one episode which happened in Oklahoma in the United States, which is a major hub of oil storage…It should not be taken as the reflection of oil industry in the world,” said Mr. Taneja in a detailed interview with The Hindu.Also read: Explained | Why are oil futures in negative terrain?But the chairman of the New Delhi-based Independent Energy Policy Institute (IEPI), acknowledged that there has been “an unprecedented destruction in demand the world over”. “Today, the demand destruction is almost in the range of 30%, because nearly 4 billion of the world’s population is under lockdown. That has shrivelled energy demand and hit the oil markets badly.”‘Super-OPEC cartel’Mr. Taneja pointed out that in the backdrop of the COVID-19 event, a “super-OPEC” cartel, for the first time, was emerging on the supply side in the form of an enlarged OPEC+, which may not… Read full this story
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