Before 2020, mankind was worried that oil reserves would soon be depleted. This year, however, global markets have faced an unprecedented oil surplus, the biggest on record. A growing number of oil refineries worldwide are shutting down as demand for crude shrinks. In the physical crude oil market, the situation is getting worse. Reportedly, some oil producers with no access to seaports are actually paying consumers to take away their crude while some producers sell a barrel of oil for less than $10. The oil market is crushed. The logistics are struggling amid a catastrophic loss of demand. Neither the Great Depression in 1929 nor the energy crisis in the 1970s, as well as the financial crisis in 2008, could compare with the collapse the oil market is facing today. Normally, around 100 million barrels are consumed daily. This year, however, oil demand has decreased by at least 25%. Experts fear that even the biggest output cuts may not help stabilize oil prices as oversupply is too big and demand is plunging.
