US oil prices fell below $0 per barrel this month, a record low brought about by reduced demand combined with limited ability of producers to store excess. Other oil-producing countries, including Saudi Arabia and Russia, have made a deal agreeing to the deepest production cut ever negotiated, which still isn’t expected to resolve excess supply.

So what?

Will the reduced profitability of oil creates a greater incentive to invest in cleaner or renewable energy? Or, will low prices discourage the investment in fossil-fuel alternatives and slow the transition to clean or renewable energy.


Signal spotter: Alisha Bhagat

Sources:

https://edition.cnn.com/2020/04/20/investing/premarket-stocks-trading/index.html

https://www.theguardian.com/environment/2020/apr/01/the-fossil-fuel-industry-is-broken-will-a-cleaner-climate-be-the-result

Photo by sippakorn yamkasikorn on Unsplash


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