Chamath Palihapitiya, the CEO of Social Capital, is expecting crude oil prices to plunge to zero
Crude oil has recently hit its 21-year low, with U.S. benchmark West Texas Intermediate (WTI) tanking to an intraday low of $14.62.
However, Virgin Galactic chairman Chamath Palihapitiya believes that this crisis is going to send the black gold to $0.
Oil becomes unwanted
Despite Russia and Saudi Arabia finally burying the hatchet by agreeing to nearly 10 percent output cuts, oil prices have so far failed to stabilize.
The COVID-19 pandemic, which has locked billions of people in their houses, has led to a global glut of crude. To put this into perspective, about 60 supertankers are currently filled to the brim with the unwanted commodity.
Oil traders hope that they will be back in business once countries start easing lockdowns, thus increasing demand for transport fuels.
Prices can go negative
While Palihapitiya’s near-zero target seems shocking enough, there is a chance that oil prices could go negative.
Western Canadian Select (WCS) recently dipped to -$0.15 since refineries have to pay for storing oil with practically no demand.
Boom or bust for Bitcoin
When it comes to Bitcoin, there is no middle ground, according to Palihapitiya. As reported by U.Today, he predicted that the cryptocurrency could go to zero or to 1 mln back in April.
Multiple prominent figures in the crypto space believe that the coronavirus pandemic could be Bitcoin’s inflection point.