Crude Oil Latest News: WTI, Brent Updates for April 22, 2020 - Bloomberg:
Oil recovered from a 21-year low, bucking two days of frenzied selling.
Brent futures for June delivery closed 5% higher after slumping as much as 17% earlier in the day. West Texas Intermediate crude also gained in New York, ending the day 19% higher following an unprecedented plunge into negative territory on Monday. The market, already inundated with bearish signals, shrugged off a U.S. government report showing that the four-week average for American petroleum demand was at a record low last week while crude stockpiles were at a three-year high.
News that U.S. President Donald Trump authorized the Navy to shoot down Iranian gunboats may have buoyed prices, but crude is not out of the woods yet, according to Robert Yawger, director of the futures division at Mizuho Securities USA. “It could potentially get worse because of the fact that storage is not all that far away from being full,” he said.
Prices near or below zero are expected to persist until producers begin shutting in production at a level that will offset the unprecedented demand collapse caused by the coronavirus pandemic. ICE Futures Europe Ltd. confirmed on Tuesday night that it’s taken steps to prepare for negative Brent pricing. Meanwhile oil traders are rewriting their risk models to accommodate potentially limitless declines.
Oil recovered from a 21-year low, bucking two days of frenzied selling.
Brent futures for June delivery closed 5% higher after slumping as much as 17% earlier in the day. West Texas Intermediate crude also gained in New York, ending the day 19% higher following an unprecedented plunge into negative territory on Monday. The market, already inundated with bearish signals, shrugged off a U.S. government report showing that the four-week average for American petroleum demand was at a record low last week while crude stockpiles were at a three-year high.
News that U.S. President Donald Trump authorized the Navy to shoot down Iranian gunboats may have buoyed prices, but crude is not out of the woods yet, according to Robert Yawger, director of the futures division at Mizuho Securities USA. “It could potentially get worse because of the fact that storage is not all that far away from being full,” he said.
Prices near or below zero are expected to persist until producers begin shutting in production at a level that will offset the unprecedented demand collapse caused by the coronavirus pandemic. ICE Futures Europe Ltd. confirmed on Tuesday night that it’s taken steps to prepare for negative Brent pricing. Meanwhile oil traders are rewriting their risk models to accommodate potentially limitless declines.
| PRICES: |
|---|
|
No comments:
Post a Comment