WICHITA FALLS (KFDX/KJTL) – Crude oil prices have plunged into the negatives as West Texas Intermediate, the U.S. Benchmark crude, closed below -$37.
Meaning for the first time ever, U.S. Oil prices are in the negatives, dropping almost 300 percent today.
The need for oil is running very thin as the need for gasoline, diesel and and jet fuel is a staggering low.
Executive Vice President of the Texas Alliance of Energy Producers and petroleum Economist Karr Ingham spoke about the effect the coronavirus pandemic is causing and how the industry will look moving forward.
“We thought $20 was bag enough, so it’s just reflective of the fact that the coronavirus and this global phenomenon has utterly cratered the demand for petroleum-related energy,” Ingham said.
Ingham said the only things companies can do to compete with the lowering prices are lowering their productions levels. And finding a market for what they do have.
“But I think we’re in for a difficult two or three months, April and May I think are going to be very very difficult months,” Ingham said. “I think oil and gas producers are finding themselves are just trying to bridge the gap of when things start to normalize.”
Ingham said he wishes there could be another way, but re-opening the economy and raising the energy demand accordingly is the only way.