As American oil prices collapsed and plunged below zero on Monday, executives knew that they were witnessing history in the making. “Incredible,” tweeted Pierre Andurand, the hedge fund trader, as the West Texas Intermediate price headed below $3 a barrel.
Mr Andurand, who that morning had warned that “negative prices are possible”, was about to see his prediction come true. An hour later the US benchmark price closed at a previously unimaginable -$37.63 a barrel as sellers were forced to pay people to take their oil, the first time in history that the price had gone negative…
Falanx Assynt’s managing director Charles Hollis said it was unlikely Saudi Arabia would take steps on its own to curb production. “The might prefer to ride out very low prices for a few months in the hope that the relaxation of lockdowns will lead to recovery in demand – but that could be quite a few months,” he said.
Falanx Group Ltd (LON:FLX), through its subsidiaries, provides cyber defence and intelligence services to blue chip and government clients worldwide. It operates through Falanx Cyber Defence and Falanx Intelligence divisions.
