,,,if production exceeds consumption.

As we discussed once before, all oil pumped out of the ground has to
go somewhere, and there is only a finite amount of storage availabie.
I guess if push comes to shove I'd volunteer to take a thousand
gallons or so off of their hands. And 'Airry could probably store at
least that much in his imaginary boats.

-----------------------------------------------

From:
https://oilprice.com/Energy/Energy-General/What-Happens-If-Oil-Prices-Go-Negative.html

Various reports hit the news feeds today quoting a deliberately
headline-grabbing statement by Paul Sankey, managing director at
Mizuho Securities, in which he is reported as saying, “Oil prices can
go negative.” That is, they could as a combination of Saudi Arabia
(and Russia) flooding the market with increased oil and the market
running headlong into COVID-19-induced curtailment of activity that is
suppressing consumption, which combined will create the perfect storm
of excess supply.

In reality, inventory levels are already rising.

CNN quotes Sankey, who said global oil demand is only around 100
million barrels per day.

However, the economic fallout from the coronavirus pandemic could
crash demand by up to 20 percent.

This would create a 20 million barrel-per-day surplus of oil in the
market that would rapidly exceed storage capacity, forcing oil
producers to pay customers to buy the commodity – hence, in effect,
negative oil prices.

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