[Oil price plunge] Oil price drops to negative economic analyst: market weirdness　

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Written by: Hu Jiaxin

2020-04-21 11:06

New York oil futures prices plunged to a negative number for the first time in history, and May oil futures closed at -37 dollars per barrel, a drop of 300%. Economic analyst Luo Jiacong believed that the decline in oil prices was unreasonable when he accepted the commercial program "Starting on a Sunny Day" this morning (21st). Even if the US produces excess oil, it is urgent to find a temporary stock in the country, and there is no need to sell oil. "Well, it's ridiculous." Luo Jiacong believes that the oil price plummeted before the close of the market in the United States, which is considered to be a weird phenomenon in the market. The speculation may involve Sino-American wrestling and the United States to retaliate against Russia, which is close to China.

Luo Jiacong also pointed out that the current decline in oil prices is related to the US Home Order, because local residents must stay at home and cannot drive out, causing the related fuel consumption to drop by about half. However, he believes that the number of newly confirmed diagnoses in the United States has fallen, the market epidemic situation will improve, and the authorities may partially lift the ban, so fuel demand still exists and is stable. "It will not be low for a long time."

Luo also believes that even if affected by the epidemic, the price of a barrel of oil falling to the level of 20 to 30 yuan will be "more reasonable." However, he pointed out that if electric vehicles are currently popular in Europe, if they are fully converted, it is estimated that with the decrease in demand, oil companies will close in the long run.

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