oil rig

One month and one day ago, the price of oil crashed down to $0/barrel, then even below zero.

Now, one month and one day later, prices are as high as they've been since before the COVID-19 pandemic.

Oil prices are near $34/barrel today at the close of trading, a small leap forward for crude and a continued positive trend for oil since the price crashed.

The reason for the crash on April 20 was a report which showed that global supply for oil had maxed out and there was not an adequate demand for the product, given the economic shutdowns that had taken place around the world.

But since that time, the world has gotten back working, albeit with restrictions.

As more energy has been used, the gap between supply and demand has gotten closer, and the price point has gone up.

As more and more restrictions are lifted, global economic conditions are expected to continue to get better after bottoming out in late-April, and the price is expected to continue to gradually rise. Before the pandemic, oil was around this same price - in the mid-$30s/barrel. 

Oil that trades at $34/barrel is not an ideal price locally, but it's getting closer to the "break even" point.

Experts say that the break-even point for profits to be made for major companies in their drilling is somewhere in the high $30s/barrel to around $40/barrel.

Obviously, the higher the price, the better, and the more local drilling will be done.

In the coming weeks, industry leaders say they'd like to see the price continue to rise to create a clearer picture for work in the Gulf to possibly ramp up.

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