Oil Extends Slump Below $19 as Gloomy Demand Outlook Persists - Bloomberg:
Oil fell below $19 a barrel in New York as a wave of gloomy demand forecasts and a cratering physical market outweighed an unprecedented deal to cut output.
China’s economy suffered a historic slump in the first quarter as the coronavirus outbreak threatened global markets for its goods. Meanwhile OPEC predicted demand for its oil will fall to the lowest in three decades. Refiners from Japan to Indonesia are canceling or delaying crude purchases, and European processors have requested big cuts in Saudi supply next month.
Near-term prices for U.S. crude are trading at huge discounts to later-dated contracts on concern stockpiles at the storage hub of Cushing, Oklahoma, will fill to capacity. That has seen prices disconnect from Brent futures in London.
Dated Brent was assessed at $18.86 on Thursday, according to S&P Global Platts, far below futures prices, and real cargoes are trading at even steeper discounts.
Oil fell below $19 a barrel in New York as a wave of gloomy demand forecasts and a cratering physical market outweighed an unprecedented deal to cut output.
China’s economy suffered a historic slump in the first quarter as the coronavirus outbreak threatened global markets for its goods. Meanwhile OPEC predicted demand for its oil will fall to the lowest in three decades. Refiners from Japan to Indonesia are canceling or delaying crude purchases, and European processors have requested big cuts in Saudi supply next month.
Near-term prices for U.S. crude are trading at huge discounts to later-dated contracts on concern stockpiles at the storage hub of Cushing, Oklahoma, will fill to capacity. That has seen prices disconnect from Brent futures in London.
Dated Brent was assessed at $18.86 on Thursday, according to S&P Global Platts, far below futures prices, and real cargoes are trading at even steeper discounts.
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