The discussion of China's responsibility for the global outbreak of the Corona also signals the market that is peaking behind us. But the combination of capital market optimism with the pessimism of oil traders is surprising. If the market is about to open and the crisis is behind us, as investors believe in capital markets, then why is this not reflected in oil futures? In the past year, the price of oil barrel has reached $ 66 a barrel - more than 70% of its price now. 

One Wall Street trader answered the question over the weekend: Trading is daily; True, it also embodies future expectations, but it mainly reflects the value of the current trading day. 

Now the market is drawing optimism from the spring that is about to be released, so prices are mostly embodying this expectation. The oil market is a more complex story. 

Indeed, the oil market is a complex story that embodies the large inventories held by the states, and the fact that by the time the market opens, oil companies will continue to produce high-volume oil from demand, because they cannot stop production in limited quantities. 

Some companies continue to produce oil at a price very close to the cost of production, and some even produce at a lower price than their cost price. About 10 days ago, McKenzie estimated that the price of a barrel of oil could even drop to zero and below, in cases where storage would be more expensive than production and companies would be willing to pay for its removal.  

Assessment: The airline industry will emerge last out of the crisis

In the meantime, one of the problems in the energy field is the plunging of the viability of developing and producing other energies. Strategically, the State of Israel, like many countries in the Western world, decided to minimize oil consumption, which is considered less pollutant than coal, but more than natural gas. 

In Israel, as in all developed countries, they have also decided to switch to electric vehicles to reduce the use of pollutant oil, but this attractive price level could slow this rate of strategic change in the medium term. 

Meanwhile, low prices embody the assessment that the airline industry will be the last to emerge from this crisis.