Crude Oil Latest: WTI, Brent Sink Again When Glut Overflows Tanks - Bloomberg:
Oil’s collapse is deepening.
Just a day after U.S. crude futures for May delivery plunged below zero for the first time ever, June futures plummeted 43% to close below $12 a barrel in New York. A massive supply glut brought on by the pandemic and a worldwide shortage of storage space have touched off a relentless rout that has shifted the entire forward curve for oil.
The meltdown spreading across global oil markets has already wiped out tens of thousands of jobs and frozen billions of dollars in capital spending. Its deflationary effect threatens to further cripple economies around the world already reeling from coronavirus-fueled lockdowns. Storage tanks, pipelines and tankers have become overwhelmed by a vast oversupply brought on by an unprecedented plunge in global fuel demand.
Oil is a “dangerous market to trade in right now,” said Pierre Andurand, founder of Andurand Capital Management LLP, in a Bloomberg TV interview. The market needs oil production to fall immediately for prices to recover, he said.
Oil’s collapse is deepening.
Just a day after U.S. crude futures for May delivery plunged below zero for the first time ever, June futures plummeted 43% to close below $12 a barrel in New York. A massive supply glut brought on by the pandemic and a worldwide shortage of storage space have touched off a relentless rout that has shifted the entire forward curve for oil.
The meltdown spreading across global oil markets has already wiped out tens of thousands of jobs and frozen billions of dollars in capital spending. Its deflationary effect threatens to further cripple economies around the world already reeling from coronavirus-fueled lockdowns. Storage tanks, pipelines and tankers have become overwhelmed by a vast oversupply brought on by an unprecedented plunge in global fuel demand.
Oil is a “dangerous market to trade in right now,” said Pierre Andurand, founder of Andurand Capital Management LLP, in a Bloomberg TV interview. The market needs oil production to fall immediately for prices to recover, he said.
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