Oil giveaway spells doom, brings out market bears - Reuters:
The crash in U.S. crude prices has turned a reliable commodity less than worthless and given fresh urgency to bearish voices, who say it sounds alarm bells for global growth and are bracing for a catastrophic collapse in asset prices.
Markets are already unnerved at the specter of traders paying to get rid of May futures contracts for West Texas Intermediate crude CLc1, as storage tanks at the delivery point in Oklahoma quickly fill with unused fuel.
But some market participants believe the transformation of “black gold” into a liability is more than a bet gone wrong, and rather heralds a new round of deflation and financial destruction as the COVID-19 pandemic wrecks the world economy.
“This is part of the deflation process,” said Murray Gunn, head of global research at market forecasting firm Elliott Wave International.
The crash in U.S. crude prices has turned a reliable commodity less than worthless and given fresh urgency to bearish voices, who say it sounds alarm bells for global growth and are bracing for a catastrophic collapse in asset prices.
Markets are already unnerved at the specter of traders paying to get rid of May futures contracts for West Texas Intermediate crude CLc1, as storage tanks at the delivery point in Oklahoma quickly fill with unused fuel.
But some market participants believe the transformation of “black gold” into a liability is more than a bet gone wrong, and rather heralds a new round of deflation and financial destruction as the COVID-19 pandemic wrecks the world economy.
“This is part of the deflation process,” said Murray Gunn, head of global research at market forecasting firm Elliott Wave International.
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