Yuval “Val” Amiel is an established entrepreneur in the Englewood, New Jersey community who leads Delta Gas and owns and operates several regional gas stations and convenience stores. Yuval Amiel maintains an interest in bulk oil supply and demand movements, which impact wholesalers as well as end consumers.
The first quarter of 2020 has witnessed a major increase in oil supply as Saudi Arabia and the Organization of Petroleum Exporting Countries (OPEC) failed to reach an agreement with Russia on proposed oil production cuts. The cuts were sought in response to decreased demand related to the coronavirus outbreak.
The result will be one of the low gas costs for consumers, as prices per barrel slide past $20 potentially reach $10 by mid-year. The 50 percent cost decrease already in effect is the most pronounced since 2008, while a price of $10 per barrel has not been reached since 1998. The latter event caused an oil glut that led to oil-producing nations working in tandem to cut supply.
While this news is good for consumers at the pump, who will pay less per gallon, and has major cost-saving effects on oil-consuming industries such as airlines, it also creates a global surplus situation.
A second-quarter glut of 12.9 million barrels per day is expected by analysts at the Standard Chartered Bank. While unused storage available still totals a healthy one billion barrels, this will strain logistical capacity spanning pipelines, vessels, processing units, and terminals.
The first quarter of 2020 has witnessed a major increase in oil supply as Saudi Arabia and the Organization of Petroleum Exporting Countries (OPEC) failed to reach an agreement with Russia on proposed oil production cuts. The cuts were sought in response to decreased demand related to the coronavirus outbreak.
The result will be one of the low gas costs for consumers, as prices per barrel slide past $20 potentially reach $10 by mid-year. The 50 percent cost decrease already in effect is the most pronounced since 2008, while a price of $10 per barrel has not been reached since 1998. The latter event caused an oil glut that led to oil-producing nations working in tandem to cut supply.
While this news is good for consumers at the pump, who will pay less per gallon, and has major cost-saving effects on oil-consuming industries such as airlines, it also creates a global surplus situation.
A second-quarter glut of 12.9 million barrels per day is expected by analysts at the Standard Chartered Bank. While unused storage available still totals a healthy one billion barrels, this will strain logistical capacity spanning pipelines, vessels, processing units, and terminals.
