Negative Oil Prices - Explained: Oil in 2020

The video discusses the destabilization of oil markets due to a breakdown in the agreement between Russia and OPEC, leading to increased oil production. This coincided with a global market shutdown, reducing demand and further lowering prices. Despite this, refined petroleum remains costly due to manufacturing processes. The video explains the dynamics of oil supply, demand, and pricing, highlighting the challenges faced by the market.

What is the primary function of OPEC in the global oil market?

• To regulate oil consumption

• To provide oil subsidies to member countries

• To explore new oil reserves

• To set rules around oil production

Why did Russia and OPEC start pumping oil excessively?

• To support the global economy

• To increase global oil reserves

• To reduce environmental impact

• To drive each other out of business

What was a significant factor that reduced the demand for oil during the market shutdown?

• Increased oil production

• Factories on lockdown and reduced travel

• New oil discoveries

• Government regulations on oil usage

Why can't gasoline prices drop to zero even if crude oil is free?

• Gasoline is a renewable resource

• Refining crude oil is costly

• Gasoline is not in demand

• Government controls the prices

What happens to petrol if it is exposed to air for too long?

• It becomes more efficient

• It goes bad

• It increases in volume

• It becomes non-toxic