The world could soon run out of space to store oil. That may plunge prices below zero
The world's thirst for oil has evaporated.
Highways are empty. Planes are grounded. Factories are dark. The unprecedented collapse in oil demand has sent crude crashing to 18-year lows.
Supply, on the other hand, remains largely resilient amid a price war between Saudi Arabia and Russia. US producers don't want to be the first to blink by turning off production.
That could mean a supply glut so epic that the world will soon run out of room to store all the unneeded barrels of oil.
"The market is starting to signal that not only is there no demand for this crude, eventually there could be nowhere for it to go," said Jeff Wyll, senior energy analyst at Neuberger Berman.
In other words, storage facilities, refineries, terminals, ships and pipelines eventually could reach capacity -- something that hasn't happened since 1998, according to Goldman Sachs.