With industrial activity forced to a snail’s pace by the coronavirus, a massive surplus of oil is causing prices to tank. The most recent in a series of crashes now sees crude oil trading at just less than $1 per barrel.
Despite the last price crash in oil tanking markets around the world, including Bitcoin, the leading cryptocurrency has not experienced its own dramatic price fall so far today. Still trading at around $7,000, a single Bitcoin is now worth more barrels of oil than it has ever been before.
Quantum Economics Founder Mati Greenspan pointed out the slide in prices earlier today. However, after crude oil prices plunged even harder, his figures became very dated in just a few hours — so he kept updating them.
Crude Oil Stocks Mount as Demand Dries Up
With much of the world still living under coronavirus movement restrictions, industrial activity is currently a fraction of what it used to be. Fewer cars on the roads, less manufacturing, and virtually no travel mean that crude oil just isn’t getting used like it usually is.
To house the surplus, traders have been forced to charter enormous oil tankers capable of carrying 2 million barrels each. [The Guardian] Such vessels have never seen such high demand. The previous record for the most oil stored in this way was 100 million barrels in 2009. Today, with available storage starting to run out, oil is selling at rock bottom prices as traders attempt to dump the asset [Financial Times].
The running out of storage space prompted a fall in oil prices to unprecedented lows. West Texas Intermediate (WTI) futures dropped to less $1 today. Major cuts in production from the US and OPEC had not gone deep enough to maintain price levels.
Bitcoin Price in Oil Barrels at All-Time High
As BeInCrypto recently reported, an earlier drop in oil prices saw Bitcoin prices crash hard. The breakdown of an OPEC agreement to maintain prices last month saw a slide in prices that impacted almost every market on the planet. The cryptocurrency industry experienced some of its most violent price moves to date in the days that followed.
However, during this latest oil price slide, Bitcoin does not seem affected in quite the same way. Although trading down on the day, the leading cryptocurrency remains close to the $7,000 at the time of writing.
Although a single Bitcoin was worth a total of 610 barrels of oil earlier today, that figure is now closer to 7,000.