Oil prices could soon turn negative as the world runs out of places to store crude, analysts warn

Oil prices could soon turn negative as the world runs out of places to store crude, analysts warn

The coronavirus pandemic has meant countries have effectively had to shut down, with many governments imposing draconian measures on the daily lives of billions of people.. Analysts at Goldman Sachs have warned the coronavirus shock is "extremely negative for oil prices and is sending landlocked crude prices into negative territory.". A three-year pact between OPEC and non-OPEC partners to curb oil output ended on Wednesday, paving the way for oil producers to ramp up production.. "The local oil price or well-head price they receive very quickly goes to zero or even negative, because if they have too much oil, they must pay someone to transport it away until they have managed to shut down their production.". To be sure, Goldman said it expects waterborne crudes like Brent to be far more insulated from the coronavirus shock, with the international benchmark likely to stay near cash costs of $20 a barrel - albeit with temporary spikes below..