Editing 2327: Oily House Index
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:In 2014-16 there was a serious surplus of {{w|crude oil}}, partially caused by increasing shale oil from the US and Canada, a slowdown in demand from China, and increasing fuel efficiency and use of renewable energy. Prices dropped from $125/BBL from 2012 to below $30 in January 2016. By October 2018, prices had recovered to $85/BBL. ] | :In 2014-16 there was a serious surplus of {{w|crude oil}}, partially caused by increasing shale oil from the US and Canada, a slowdown in demand from China, and increasing fuel efficiency and use of renewable energy. Prices dropped from $125/BBL from 2012 to below $30 in January 2016. By October 2018, prices had recovered to $85/BBL. ] | ||
;OHI briefly became infinite as oil prices reached zero in 2020 | ;OHI briefly became infinite as oil prices reached zero in 2020 | ||
β | :In April 2020, the {{w|coronavirus pandemic}} dramatically reduced vehicle and air transport, crashing oil demand. [https://www.cnbc.com/2020/04/25/scary-visceral-unprecedented-traders-describe-oils-wild-week-and-fall-to-negative-prices.html Oil futures actually went to zero], and even below, several times: oil producers paying consumers to take their oil, to avoid the costs of storing it. Dividing anything by zero | + | :In April 2020, the {{w|coronavirus pandemic}} dramatically reduced vehicle and air transport, crashing oil demand. [https://www.cnbc.com/2020/04/25/scary-visceral-unprecedented-traders-describe-oils-wild-week-and-fall-to-negative-prices.html Oil futures actually went to zero], and even below, several times: oil producers paying consumers to take their oil, to avoid the costs of storing it. Dividing anything by zero yields infinity, hence the "infinite oily house index". The graph should actually wrap around to the negative axis at this point. |
==Transcript== | ==Transcript== |