Chamath Palihapitiya, the CEO of Social Capital, is anticipating crude oil costs to plunge to zero
Crude oil has not too long ago hit its 21-year low, with U.S. benchmark West Texas Intermediate (WTI) tanking to an intraday low of $14.62.
Nevertheless, Virgin Galactic chairman Chamath Palihapitiya believes that this disaster goes to ship the black gold to $0.
Oil turns into undesirable
Regardless of Russia and Saudi Arabia lastly burying the hatchet by agreeing to almost 10 % output cuts, oil costs have up to now did not stabilize.
The COVID-19 pandemic, which has locked billions of individuals of their homes, has led to a worldwide glut of crude. To place this into perspective, about 60 supertankers are presently crammed to the brim with the undesirable commodity.
Oil merchants hope that they are going to be again in enterprise as soon as international locations begin easing lockdowns, thus rising demand for transport fuels.
Costs can go adverse
Whereas Palihapitiya’s near-zero goal appears stunning sufficient, there’s a probability that oil costs may go adverse.
Western Canadian Choose (WCS) not too long ago dipped to -$0.15 since refineries need to pay for storing oil with virtually no demand.
Increase or bust for Bitcoin
In relation to Bitcoin, there isn’t a center floor, based on Palihapitiya. As reported by U.Today, he predicted that the cryptocurrency may go to zero or to 1 mln again in April.
A number of distinguished figures within the crypto area consider that the coronavirus pandemic might be Bitcoin’s inflection point.
