The problem isn't in production, at least not for West Texas Intermediate. It's storage capacity. Storage is running out and last week, the price for the end of the May contracts was -$38 or worse per barrel. Lots of rigs in West Texas have been taken out of service. The drop in demand for oil because of COVID-19 and the disagreement between Russia and Saudi Arabia has contributed to the issue too. More than 2 dozen oil tankers are sitting off the coast of California being used for storage. It's prertty grim out here in the Permian Basin right now!
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