Negative futures crude prices : correlation of OPEC-plus supply and existing VLCCs-FPSOs and onshore storage indifferences

Abstract EN

This article attempts to explain the various interactions of crude market agents that resulted in a negative oil price in 2020.

the study examined contango conditions and modelled onshore storage capacity and FPSO demand.

the empirical results show that in a case of perfect oligopolistic competition, the marginal cost of petroleum inventories would take the position of the price-cost difference for short-term deliveries.

so, we point out that the OPEP-plus producers could serve as Stackelberg's leaders by setting production quotas in the short future.