For the first time in history, US oil prices are falling below zero

    The demand for oil and its derivatives decreased during the past months due to the closing procedures in various countries of the world resulting from the outbreak of the Corona epidemic and the need for people to stay in their homes, work stopped in many factories and the oil companies were forced to hire huge oil tankers to store surplus crude oil, which forced the oil companies to To pay the buyers to move the crude away from its facilities to avoid paying more money to store it, all of that had the major impact of the drop in the price of a barrel of US oil to (- $ 37.36), which can be disembarked, and in a statement to the oil expert at the CFR Eu Stewart Research Center Glickman, The Impact of Decline A huge degree of demand that they exceed all previous expectations. As for the contracts for the delivery of next June, the price of a barrel reached only $ 20. The benchmark Brent crude fell in the same period by nearly 9% to reach $ 26. Glickman said that the historic decline in oil prices reminds everyone of the obstacles faced by international oil companies, warning of the possibility of a decline in the contracts for the month of June also if the economic closure continues in most parts of the world.

  The impact of international oil prices during the past months is attributed to two main factors:

 – The global demand for oil decreased due to the depression in the global economy.

– The clear and declared conflict between the Organization of Petroleum Exporting Countries (OPEC) and Russia because of differences over the volume of daily production. Early this month, OPEC members and their allies finally agreed on a historic deal to cut the daily product by about 10%, which is the largest reduction of its kind, yet experts believe it is not enough to change the status quo.

  The fall in oil prices today came as a result of investor fears that there are no places to store crude to the point that American producers may have to pay customers to buy crude to reduce supply oversupply and provide storage sites. And US crude futures fell by 95%. It fell to below zero, and this level, which was recorded by the American West West Texas Intermediate, is the lowest in history. Experts attributed this decline to the decline in demand for crude due to the spread of the Corona virus, and the proximity of American oil depots to fullness, and the collapse in the oil markets comes amid a state of stagnationThe economy due to the repercussions of the spread of the Corona virus, and the measures taken to combat it. The International Monetary Fund warns that entering the world’s economies in a downward spiral of decline will be the deepest since the Great Depression of the thirties of the last century.

 Among the repercussions of the collapse of US crude prices, the US company, Halliburton, the oilfield services giant, announced on Monday a loss of one billion dollars in the first quarter and provisions for a devaluation of 1.1 billion dollars, while it provided grim forecasts for shale oil fields in North America after the prices fell due to the Corona virus.

Hallibutton, which operates most of its activities in North America, reported a 25% reduction in revenue from the region to 2.46 billion.

“For the remainder of the year, the company expects a further decline in revenue and profitability, especially in North America,” said Halliburton CEO Jeff Miller.

The company said it will cut capital spending this year to 800 million and reduce costs by about a billion dollars. The company sacked hundreds of workers and granted leave for a few thousand, while its executive team announced a voluntary cut in wages.

The company suffered a net loss of $ 1.02 billion, or $ 1.16 a share, in the first quarter, compared to a profit of $ 152 million, or 17 cents per share, a year earlier.

Prof. Dr. Adel Issa Kazem Al-Wazani