Oil prices slide again as world runs low on storage capacity amid plunge in demand
Life Tonic
2020-04-28
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Oil fell on Tuesday, adding to huge declines in the previous session, on worries about limited capacity to store crude worldwide and expectations that fuel demand may only recover slowly as coronavirus pandemic restrictions are gradually eased.
https://s.click.aliexpress.com/e/_dXEGelr
US West Texas Intermediate (WTI) crude CLc1 futures dropped by as much as 7.1% and were off 6%, or 77 cents, at $12.01 a barrel as of 0110 GMT. WTI plunged 25% on Monday.
Brent crude LCOc1 futures fell as much as 3.5% in early trade and were last down 1.4%, or 27 cents, at $19.72 a barrel. The benchmark slid 6.8% on Monday, and the contract for June delivery expires on April 30.
Strategists said part of the WTI decline is due to retail investment vehicles like exchange-traded funds selling out of the front-month June contract and buying into months later in the year to avert massive losses like last week, when WTI plummeted below zero.
“Clearly everything’s getting dragged down by the machinations in the WTI futures market,” said Daniel Hynes, senior commodity strategist at Australia and New Zealand Banking Group (ANZ) in Sydney.
Oil fell on Tuesday, adding to huge declines in the previous session, on worries about limited capacity to store crude worldwide and expectations that fuel demand may only recover slowly as coronavirus pandemic restrictions are gradually eased.
https://s.click.aliexpress.com/e/_dXEGelr
US West Texas Intermediate (WTI) crude CLc1 futures dropped by as much as 7.1% and were off 6%, or 77 cents, at $12.01 a barrel as of 0110 GMT. WTI plunged 25% on Monday.
Brent crude LCOc1 futures fell as much as 3.5% in early trade and were last down 1.4%, or 27 cents, at $19.72 a barrel. The benchmark slid 6.8% on Monday, and the contract for June delivery expires on April 30.
Strategists said part of the WTI decline is due to retail investment vehicles like exchange-traded funds selling out of the front-month June contract and buying into months later in the year to avert massive losses like last week, when WTI plummeted below zero.
“Clearly everything’s getting dragged down by the machinations in the WTI futures market,” said Daniel Hynes, senior commodity strategist at Australia and New Zealand Banking Group (ANZ) in Sydney.
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