GZERO Media logo

Betty Liu Explains: Why Oil Prices Went Negative

Why did oil prices go negative last week?

That was really quite a day on Monday. So, you saw WTI crude go into negative price territory. As you can imagine, the demand for oil has dropped dramatically. We're not driving as many cars. We're not flying as many airplanes. And so, that decline in demand means that oil is piling up in storage. That price drop also was likely exacerbated by an expiring futures contract and it basically capped off three straight weeks of losses in oil.


What is the difference between WTI and Brent crude?

That is a common question. Those are the two most popularly traded grades of oil. Brent stands for Brent North Sea Crude and WTI stands for West Texas Intermediate. And it basically just tells you where that oil is coming from. So, the Brent is produced in the North Sea and it serves as the oil benchmark for Middle East, Africa and European oil. WTI is the oil benchmark for North American crude. Now, there's been commentary around the fact that Brent seems to be less susceptible to some of these storage issues you've been hearing about. It's a waterborne contract, whereas WTI is landlocked. So, there's a finite amount of storage and it's much more difficult to get that oil in and out of the region.

Empathy and listening are key to establishing harmonious relationships, as demonstrated by Callista Azogu, GM of Human Resources & Organization for Nigerian Agip Oil Company (NAOC), an Eni subsidiary in Abuja. "To build trust is very difficult. To destroy it is very easy," says Callista, whose busy days involve everything from personnel issues to union relationships. She sees great potential for her native Nigeria not only because of the country's natural resources, but because of its vibrant and creative people.

Learn more about Callista in this episode of Faces of Eni.

Saturday will mark the beginning of an historic turning point for European politics as 1,001 voting members of Germany's Christian Democratic Union, the party of Chancellor Angela Merkel, hold an online conference to elect a new leader.

Here are the basic facts:

More Show less

Does Cuba belong back on the US's State Sponsors of Terrorism list? The Wall Street Journal Editorial Board showed their support for Secretary of State Mike Pompeo's decision on this issue in a recent opinion piece, "Cuba's Support for Terror." But in this edition of The Red Pen, Ian Bremmer and Eurasia Group analysts Risa Grais-Targow, Jeffrey Wright and Regina Argenzio argue that the WSJ's op-ed goes too far.

We are now just a few days away from the official end of Donald Trump's presidency, but the impacts of his latest moves in office will obviously last far beyond Joe Biden's inauguration. There's the deep structural political polarization, the ongoing investigations into the violence we saw at the Capitol, lord knows what happens over the next few days, there's also last-minute policy decisions here and abroad. And that's where we're taking our Red Pen this week, specifically US relations with Cuba.

More Show less

Watch Jon Lieber, who leads Eurasia Group's coverage of political and policy developments in Washington, lend perspective to this week's historic impeachment proceedings.

Impeachment. President Trump became the first president ever to be impeached twice this week. And the question on everybody's mind is will he be convicted in the Senate? And I think the answer right now is we just don't know. I'd probably bet against it. There was a really strong Republican vote against impeaching him in the House, with only 10 of the over 100 Republicans breaking with the President and voting to impeach him. And the question now is in the Senate, is there more support for a conviction? Senate Majority Leader McConnell has indicated he's at least open to it and wants to hear some of the facts. And I expect you're going to hear a lot of other Republicans make the same statement, at least until the trial begins.

More Show less

They call it Einstein. It's the multibillion-dollar digital defense system the US has used to catch outside hackers and attackers since 2003. But it was no match for what's looking like one of the biggest cyber breaches in US history. Ian Bremmer breaks it down.

Watch the GZERO World episode: Cyber attack: an act of espionage or war?

The GZERO World Podcast with Ian Bremmer. Listen now.

GZEROMEDIA

Subscribe to GZERO Media's Newsletter: Signal

Will the Senate vote to convict Trump?

US Politics