The oil and gas sector has had a crazy ride in the last few years. US futures cratered from $18 a barrel to -$38 in a few hours in April 2020. The negative pricing was due to buyers of oil contracts needing to take physical delivery of the oil – and the fact that people were willing to pay others to avoid taking delivery pushed the price below zero for the first time in history. Speculators intensified the trend by exploiting the panic to sell oil. By March 2022, however, oil prices had surged to $138.
The wild price swings have translated into huge wins and losses in the British oil and gas sector. And it’s not just the oil price that has been a factor in volatility – the controversial windfall tax (WFT) aiming to capitalise on the extraordinary oil and gas price increases since the outbreak of war in Ukraine has hit many stocks.
There are protestors who are vehemently against oil and gas.
