Oil Prices Plunge Below Zero

There was an unprecedented event today in the international markets that should have some bearing for Belize. The coronavirus pandemic caused oil demand to drop so rapidly that producers have no space to store the crude oil. With most of the world in lockdown and air and other travel on halt, use of oil is limited. Oil prices plunged below zero and U.S. crude for May delivery turned negative, which had never before occurred since NYMEX oil futures began trading in 1983. Reports say that U.S. crude for June delivery is still trading above twenty dollars a barrel which spells disaster in the industry. We reached out to the Financial Secretary Joe Waight for his comment on what this means for Belize. By news time, we did not get a response, but we do know that government is also hard pressed for revenue so that any savings to the consumer may not be a sure thing.