Historic Low for Crude Oil Price (Does This Affect Australia?)
The US crude oil futures (West Texas Intermediate or WTI) ended their day of trading below $0 to $-37.63 a barrel on April 20, 2020 (a $55.90 drop per barrel).
WTI has never traded in the negatives in recorded history, before now.
The reason for the drop also has to do with the relationship between supply and demand that is currently being distorted from the effects of COVID19...
"Given that WTI is physically delivered, there’s a problem — a big one — when there increasingly is no place to put it. The reason there is no room at the inn for all this crude is, first, the fundamental imbalance between supply and demand." - FreightWaves
What This Means For Australia
This can all be complicated to understand however, an important piece of information regarding diesel and what this means for you, is that the price of Australian diesel follows Brent crude (an international benchmark for the price of crude) not WTI.
Brent has more storage space for crude oil than WTI as it has multiple storage locations around the world and can, therefore, deliver oil easier. Brent settled trading at $25.57 a barrel on April 20 (an 8% drop), to give a comparison.
So, while this will eventually affect trucking companies and logistics as a whole across the globe, there is still yet a while to go before we see this.