Forum Home | Log in | Signup | My Page | Rules | FAQ | Boards | Members | Search
Replies to Msg. #1127548
.
 Msg. #  Subject Posted by    Board    Date   
59408 Re: US crude plummets more than 15% as one analyst says the situation stateside is �quite dire�
   Price at the pump should be dropping. AND OF COURSE, my tank is full... 		DGpeddler   POPE 5   20 Apr 2020
 7:28 PM
59367 Re: US crude plummets more than 15% as one analyst says the situation stateside is �quite dire�
   Thats the second article I read today and I dont see the drop they are... 		capt_nemo   POPE 5   20 Apr 2020
 8:16 AM

The above list shows replies to the following message:

US crude plummets more than 15% as one analyst says the situation stateside is ‘quite dire’

By: Decomposed in POPE 5
Mon, 20 Apr 20 7:59 AM
Msg. 59365 of 62138
Jump to msg. #  

April 19, 2020

US crude plummets more than 15% as one analyst says the situation stateside is ‘quite dire’

• U.S. crude prices plunged in the morning of Asian trading hours on Monday as traders continued to fret over a slump in demand due to the coronavirus pandemic, with one analyst describing the situation stateside as “quite dire.”

• Prices on the May contract for West Texas Intermediate crude futures dropped 15.49% to $15.44 per barrel. The futures contract is set to expire on Tuesday, according to Refinitiv.

by Eustance Huang
CNBC.com


Workers extracting oil from oil wells in the Permian Basin in Midland, Texas on May 1, 2018.

U.S. crude prices plunged in the morning of Asian trading hours on Monday as traders continued to fret over a slump in demand due to the coronavirus pandemic, with one analyst describing the situation stateside as “quite dire.”

Prices on the May contract for West Texas Intermediate crude futures dropped 15.54% to $15.43 per barrel. Meanwhile, international benchmark Brent crude futures edged 0.68% lower to $27.89 per barrel.

ANZ’s Daniel Hynes told CNBC’s “Squawk Box” on Monday that one of the reasons behind the “crater” in U.S. crude prices was the impending expiration of the May futures contract, set to happen on Tuesday, according to Refinitiv. The June WTI contract fell 5.47% to $23.66 per barrel.

Hynes, who is a senior commodity strategist at ANZ, struck a sombre note on the situation in the U.S.

There is real pressure on storage in the relatively landlocked market as a consequence of the “collapse in demand,” he told CNBC.

“Without any sort of hope I suppose, at least over the next month … about easing up. I think prices are gonna remain under pressure,” Hynes said.

The coronavirus pandemic has dealt a severe blow to economic activity around the globe and sapped demand for energy. While OPEC and its oil producing allies finalized a historic agreement earlier this month to cut production by 9.7 million barrels per day, the International Energy Agency has warned that the cuts may not be enough to offset a severe plunge in oil demand.

With demand at near-paralysis, oil and fuel tanks around the world are close to brimming - stark evidence of the global glut and a function of the ‘contango’ structure of the futures market where contracts for later delivery trade at a premium to the front-month.

That’s led to a dash by traders to lease floating or onshore storage in a bid to sell the fuel for a profit when prices rebound.

Global oil storage is “rapidly filling – exceeding 70% and approaching operating max,” Steve Puckett, executive chairman of TRI-ZEN International, an energy consultancy, told CNBC earlier this month.

http://www.cnbc.com/2020/04/20/oil-markets-us-crude-futures-in-focus-as-coronavirus-dents-demand.html


Avatar

Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months