Analyst View: After U.S. oil futures crash, what next? - Reuters:
A historic rout in oil markets sent U.S. crude prices plummeting to as much as minus $40 a barrel as traders rushed to get rid of unwanted stocks with storage capacity already overflowing amid a coronavirus-induced demand collapse.
U.S. West Texas Intermediate (WTI) crude for May delivery CLc1 recouped some losses on Tuesday to be just in positive territory, leaving market participants to assess the wider implications.
Here is what analysts expect in terms of market response:
Goldman Sachs
* “Such a price dynamic could play out again tomorrow (April 21), the last trading day of the May contract. After that, the physical reality of a still massively oversupplied oil market will likely exert downward pressure on the June WTI contract.”
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