TNT
Harambe:
Bloomberg: Oil Drops to 18-Year Low on Global Demand Crunch, Storage Woes
Oil extended its slide in Asia, trading at near two-decade lows after agreed cuts by the biggest producers were seen barely making a dent in the demand destruction wrought by Covid-19 and on increasing concerns that traders are quickly running out of room to store crude.
Futures in New York dropped as much as 5.5% to the lowest since November 2001, following a 20% slump last week. China reported its first economic contraction in decades on Friday, a sign of how bad things could get in Europe and North America, which have yet to emerge from virus lockdown.
“Concern continues to mount that storage facilities in the U.S. will run out of capacity,” ANZ Research said in a note. “Stockpiles at Cushing, the pricing point for WTI, are up nearly 50% since the start of March.”
Near-term prices for U.S. West Texas Intermediate crude are trading at huge discounts to later-dated contracts on concern the storage hub of Cushing, Oklahoma, will fill to capacity. That has seen prices disconnect from Brent futures in London.
“Concern continues to mount that storage facilities in the U.S. will run out of capacity,” ANZ Research said in a note. “Stockpiles at Cushing, the pricing point for WTI, are up nearly 50% since the start of March.”
https://www.bloomberg.com/news/articles/2020-04-19/oil-drops-to-18-year-low-on-global-demand-crunch-storage-woes
Source: Dinar Recaps
______________________________________________________
If you wish to contact the author of any reader submitted guest post, you can give us an email at UniversalOm432Hz@gmail.com and we'll forward your request to the author.
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © 2020 Dinar Chronicles
0 Comments: