Question

since oil prices went nehative om 4/20/20, what are the prospects for the oil industry ovet the next 3-5 years?

Answer 1

Prices of oil went negative because of lack of storage facility available due to fears of coronavirus and industries shutting in in compliance of government regulation to to shutdown the economy in response and heavy unwinding in the derivative segment of oil futures on the long side.

The prices of oil started to fall when pandemic was announced by WHO and OPEC Nations could not arrive at Mutual agreement for price fixation and then It crashed the maximum after 1991. This crash did not stop till today when the oil futures crashed into negative. This negative price is reflective of the storage cost and heavy volume which were long on they started to liquidate their positions and oil went into negative settlement.

I personally expect that this is the bottom of oil prices and it will start to recover since this fear of coronavirus starts to settle down.one should be buying the oil because this is once in a lifetime opportunity when there is so much blood on the street that people have become completely pessimistic and it's one of its own kind that a commodity futures has gone into negative zone.

This may be the bottom for oil price for a long period of time to come so one should be accumulating on the oil reserves as well as the oil futures as well. The recovery can be as swift as the fall because this is all liquidity squeeze and sensation driven. The reality and prices are complete in contrast with each other because this is just temporary and it will regain the momentum once economy reopens.