 Hey guys how's it going, Dapoely here. Now guys today I'm going to be speaking about why oil prices drop to zero dollars a barrel. Now guys I remember vividly very well on the 20th of April which happened to be my birthday unfortunately oil prices did drop to zero dollars a barrel. Can you imagine I'm on the phone speaking to family and friends and then I turn on the news bam oil prices have dropped to zero dollars a barrel. Now I know most of you out there are wondering why this did happen so I decided to put together this video you know from as being the financial trader coming from the market's perspective why did oil prices actually drop to zero dollars a barrel. Now guys if you're interested in finding out why this did happen I suggest you stick around to the very end of this video. Now guys if you're like myself who comes from an oil producing country when oil did drop to zero dollars a barrel on the 20th of April you must have most likely gone into some form of panic. Now I know most oil producing countries rely solely on oil in the price of oil and the revenue that they make from oil to fund their government expenditure. Now what happens when oil prices drop obviously these countries can no longer fund their you know government expenditure they can no longer fund projects and stuff like that and this is actually what leads most economies into a recession. Now I know most of you guys are worried so I decided to put together this video you know just to basically explain to you guys why this happened to oil. Now guys before I get into that you have to understand that oil historically hadn't been doing so well so between 2015 to 2016 late 2014 2015 2016 oil had been struggling oil literally went from 130 dollars a barrel and crashed all the way down to 22 dollars a barrel. Now that's a discussion for another day so between 2016 all the way up back to 2018 oil managed to recover so we went from about 22 dollars a barrel all the way back up to 62 dollars a barrel so we were trading about 62 dollars a barrel for a bit we were fluctuating between 62 all the way down to what 51. Now this was really good for a lot of the oil producing economies because that meant that they could sell oil quite profitably as opposed to how they were selling it back in 2015 for just 22 dollars a barrel. Now the real question in everybody's mind was why the hell did oil now drop to zero dollars a barrel like this has never happened before how the hell did oil now drop to zero dollars a barrel on the 20th of April. Now guys you have to understand that this actually happened for two reasons and the first reason being obviously COVID-19 COVID-19 came into the picture at about late November early December most of you guys who are watching this video only got to hear about COVID-19 in January February but you have to understand that COVID-19 was already hitting the Chinese economy really hard from late late November to early December so what this meant was the Chinese government had to start shutting down economies like factories you know stuff like that so what happens when the the largest the world's largest consumer of oil starts to shut down oil prices start to dwindle so COVID-19 came in right COVID-19 came in shut down the Chinese economy and started affecting other parts of the world so what happens when you know the largest consumer of oil you know can no longer do business the demand for oil automatically starts to dwindle and obviously with the rest of the other guys like the United Kingdom and the US and the rest of all the rest of everybody was shutting down right so things went on flying nobody was going anywhere not even just China they told us to stay at home so this carried on from about early December all the way you know down into February so oil prices dropped from about $50 a barrel all the way down to $30 a barrel so COVID-19 was the first catalyst to actually bring oil all the way from $50 down to $30 now the second reason why oil actually started to drop now you have to understand that COVID-19 brought it from 50 all the way down to 30 now what now actually did happen was the major producers of oil in the world being Saudi Arabia and Russia had a meeting with OPEC and they both agreed that okay look COVID-19 has come into the picture planes are not flying anymore people are going to stay in their houses people are not buying petrol China for goodness sake has shut down so what do we do about this so the the Saudi government and the Russian government both agreed on the round table that they were going to cut production right but something really bad happened right so the Russians flew back to Moscow and the Saudis flew back to Saudi Arabia and the Russians went back to Moscow and instead of fulfilling the agreement that they had with the with the Saudi Arabian government they went back to Moscow and not only did they refuse to cut production they actually went and what doubled their production now the Saudi government hearing about this got really really pissed and they were like you know what F you guys fuck you guys if you guys want to play this battle I can play this battle as well so as a Russian government double production so did the Saudi government now guys you have to understand that COVID brought the prices from 50 to 30 with this double in production from both I wouldn't even call it a double in production I'll call it a price war with this price war going on between Saudi and the Russian government oil prices further decline from 30 all the way down to 15 all right guys so at this point we're now currently trading at $15 a barrel right $15 a barrel is really low actually trading between $15 to $12 a barrel me being a very smart trader I already started short selling oil from about once like right after COVID struck I was shutting oil from about $42 a barrel you know all the way down into 80 because I didn't feel it was going to go lower than 18 and then obviously the Saudi government and the Russian government having all these issues they drove the prices down to what $15 a barrel now guys so we were trading about $15 a barrel all the way in from March late March all the way into middle of April so $15 a barrel $12 a barrel you know was battling around along those regions and then on this fateful day on the 20th of April being my birthday guys you have to understand it was absolutely crazy because like I said earlier I was speaking to my family I was having all this you know phone calls coming in I remember this calling me happy birthday happy birthday and then you know I was feeling absolutely on top of the world and then I turned the TV on and what do I see oil prices have what crashed to not $5 a barrel but $0 a barrel as a matter of fact oil prices have actually hit minus $1 a barrel why did this happen now guys how do you go from trading at $15 a barrel to $0 a barrel on the 20th of April like I said earlier guys the US oil producers ExxonMobil, Chevron, Mobile and the likes of them they were pumping all this oil you know everything out here in school is $15 $12 a barrel we can still make a profit and so they were pumping all this oil and then it got to a point that they realized that listen we pumped so much oil that we have nowhere else to keep it they're like okay let's ship some oil down to the refineries let's tell the refiners to keep the oil for us you know pending you know how long this whole COVID-19 shutdown takes and the refineries are telling them that listen we don't have any more capacity to keep your oil there's no more we don't have any more space they're like okay cool let's keep the oil on the oil tankers now oil tankers are the massive vessels the ships that take the oil from the rigs from where they produce the oil all the way down to refineries so like let's store them on these ships let's store them on the vessels pending when all this happened and the vessels are saying we are full as well literally they were over was it about 10 dozen ships floating on the coast of the united states all filled with oil to the brim so the oil companies are like okay let's store it in-house and then the in-house team were telling them like listen we're filled up to the brim so what actually happened was there was all this supply but there was zero demand and you all know what happens basic economics once there's all this supply and there's no demand literally once there's a glut in the market the prices tend to fall so literally guys that is exactly what costs oil prices to drop to zero dollars a barrel like literally it was so bad guys that oil companies even stopped to they stopped selling oil like they were paying storage facilities to please keep their oil for them literally it was so bad that they will pay they were paying people to keep their oil for them the oil the drum that they used to store the oil was actually now more expensive than the oil inside oil became absolutely worthless now guys this is a real issue this is something that did happen i'm not just making this up as you can see if you can rewind back two three weeks from now you can see everything i'm saying actually the truth now this does pose a lot of threat to oil producing countries especially countries who depend so much on oil revenue okay they depend so much on their oil proceeds that if oil prices are this low they can no longer fund their expenditure but what does this mean for you how can you ensure that you your family your loved ones are all immune to this now guys you guys especially if you live in an oil producing country you need and i don't care if you don't live in an oil producing country because low oil prices just has a way of having a ripple effect across the global economy right whatever job it is you're working on you might just feel like oh i'm good guys all your prices just have a way of fucking everybody up now the question is how do you position yourself in such a way whereby low oil prices prices don't actually affect yourself your family and your loved ones now what i would advise you guys to go ahead and do is this you need to go ahead and pick up new skills the internet is the new freaking oil wealth right i look at if you look behind me this is what i call a sales funnel literally i built this sales funnel instead of calling it a sales funnel a series of pages that help you make money online right so instead of calling this a sales funnel i actually call this my oil rig because my oil well is now the internet you need to go learn a skill that will enable you go into the in the internet is the new marketplace you need to go learn a new skill that will enable you go into the marketplace which is now the internet and extract money and put in your pocket you have to understand that the internet is immune because this is we're talking globally right we're talking everybody in the world there's always going to be money in the world right forget about oil prices are low or high there are always going to be what money in the world so guys you need to learn a skill that regardless of oil prices you're still going to be able to feed your family guys i suggest you check out one of these videos right i'm going to pop up one about here if you're watching this on facebook or instagram or whatever it is you're watching this i suggest you check out my youtube channel one of these videos i speak about the seven high income skills you need to learn today in order for you to start making at least two thousand dollars a month from the internet man guys i hope i've been able to provide you guys value i for those of you trading expert oil expert i as you can see i didn't really want to go in depth into this topic because i wanted every other person to watch this video and understand exactly what i was saying if you catch me on one of my webinars where i'm always analyzing the market you will hear me go really really really in depth obviously speaking about all the all the financial terms and all that kind of stuff so guys if you found this video helpful do me a little favor smash that subscribe button drop me a comment and i'll catch you guys in my subsequent videos all right guys take it easy and peace out