Minus $37? Oil Was Priced Even Worse in Montana [AUDIO]
"Oil crashes 305%. Now -$36.73 a barrel." That was the news Monday from The Fox Business Network:
During Monday's session, West Texas Intermediate crude oil futures for May delivery cratered by 305 percent to -$36.73 a barrel. At a price below zero, buyers would be paid to take delivery as there are costs associated with transportation and storage. WTI closed at its lowest level since recordkeeping began in March 1983, according to Dow Jones Market Data.
So if -$37 was the price of oil on the WTI, what were producers in places like Baker and Shelby, Montana getting for their oil? At least ten dollars worse according to Alan Olson with the Montana Petroleum Association. He joined us on Tuesday's Montana Talks.
That was my first question for Alan. The other questions we had: how will Montana refinery jobs hold up given the drop in demand for fuel? And, with prices this low forcing American energy producers out of production- how quickly will American producers be able to get back into action? Alan tells us that he thinks prices will recover by 1st quarter of next year.
As for the answers to the above questions, click below for the full audio from the show: