• Contact Us
  • About Us
Tech News, Magazine & Review WordPress Theme 2017
  • Bank
    • IBPS PO
    • IBPS Clerk
    • IBPS SO
    • IBPS RRB PO
    • IBPS RRB Clerk
    • SBI PO
    • SBI Clerk
    • SBI SO
    • RBI Grade-B
    • RBI Assistant
    • NABARD
  • SSC
    • SSC CGL
    • SSC CHSL
    • SSC CPO
    • SSC JE
    • SSC MTS
    • SSC STENOGRAPHER
    • SSC GD
  • Insurance
    • ESIC SSO
    • ESIC UDC
    • GIC Assistant Manager
    • LIC AAO
    • LIC ADO
    • NICL
    • OICL
  • Teaching
    • TET
    • CTET
    • KVS
    • NVS
  • Railway
    • RAILWAY ALP
    • RAILWAY GROUP-D
    • RPF EXAM
    • RPSF
    • RRB ASM
    • RRB JE
    • RRB NTPC
  • State Level
    • UTTAR PRADESH
      • UP Police Constable
      • UP Police SI
      • UPPCL
      • UPSSSC
      • LMRC
      • VDO (Gram Panchayat Adhikari)
      • LEKHPAL
    • DELHI
      • Delhi Police
      • DMRC
      • DSSSB
    • MADHYA PRADESH
      • MP Patwari
    • RAJASTHAN
      • RSMSSB
      • Rajasthan Police
    • HARAYANA
      • Harayana Police
      • HSSC Group-D
    • BIHAR
      • Bihar Police Constable
      • BSPHCL
    • PUNJAB
      • PSPCL
  • Goverment ID
    • Aadhar Card
    • PAN Card
    • Voter ID
    • Passport
    • Driving License
    • Voter ID
    • Fast Tag
    • Cast Certificate
    • Birth Certificate
  • News
    • Latest Stories
    • Trending Stories
    • Business
    • Education News
    • World
    • Tech
No Result
View All Result
  • Bank
    • IBPS PO
    • IBPS Clerk
    • IBPS SO
    • IBPS RRB PO
    • IBPS RRB Clerk
    • SBI PO
    • SBI Clerk
    • SBI SO
    • RBI Grade-B
    • RBI Assistant
    • NABARD
  • SSC
    • SSC CGL
    • SSC CHSL
    • SSC CPO
    • SSC JE
    • SSC MTS
    • SSC STENOGRAPHER
    • SSC GD
  • Insurance
    • ESIC SSO
    • ESIC UDC
    • GIC Assistant Manager
    • LIC AAO
    • LIC ADO
    • NICL
    • OICL
  • Teaching
    • TET
    • CTET
    • KVS
    • NVS
  • Railway
    • RAILWAY ALP
    • RAILWAY GROUP-D
    • RPF EXAM
    • RPSF
    • RRB ASM
    • RRB JE
    • RRB NTPC
  • State Level
    • UTTAR PRADESH
      • UP Police Constable
      • UP Police SI
      • UPPCL
      • UPSSSC
      • LMRC
      • VDO (Gram Panchayat Adhikari)
      • LEKHPAL
    • DELHI
      • Delhi Police
      • DMRC
      • DSSSB
    • MADHYA PRADESH
      • MP Patwari
    • RAJASTHAN
      • RSMSSB
      • Rajasthan Police
    • HARAYANA
      • Harayana Police
      • HSSC Group-D
    • BIHAR
      • Bihar Police Constable
      • BSPHCL
    • PUNJAB
      • PSPCL
  • Goverment ID
    • Aadhar Card
    • PAN Card
    • Voter ID
    • Passport
    • Driving License
    • Voter ID
    • Fast Tag
    • Cast Certificate
    • Birth Certificate
  • News
    • Latest Stories
    • Trending Stories
    • Business
    • Education News
    • World
    • Tech
No Result
View All Result
Naukri Server
No Result
View All Result

US Oil Price Crash Amid Coronavirus Crisis, What Next? Here’s What Analysts Say

admin by admin
April 21, 2020
Home News Business
Share on FacebookShare on Twitter


WTI Crude Oil Price: The May contract recouped some losses on Tuesday to be just in positive territory

A historic rout in oil markets sent US crude prices plummeting to as much as minus $40 a barrel as traders rushed to get rid of unwanted stocks with storage capacity already overflowing amid a coronavirus-induced demand collapse. US West Texas Intermediate (WTI) crude – the benchmark for US oil prices – for May delivery recouped some losses on Tuesday to be just in positive territory, leaving market participants to assess the wider implications. (Also Read: US Futures Crawl Back To Positive Territory After Record Fall Below $0/Barrel)

Here is what analysts expect in terms of oil market response:

Goldman Sachs

“Such a price dynamic could play out again tomorrow (April 21), the last trading day of the May contract. After that, the physical reality of a still massively oversupplied oil market will likely exert downward pressure on the June WTI contract.”

“But with ultimately a finite amount of storage left to fill, production will soon need to fall sizeably to bring the market into balance, finally setting the stage for higher prices once demand gradually recovers.”

Sushant Gupta, downstream research director, Wood Mackenzie:

“The historic drop in WTI prices is an indication of the downward pressure which many other crude oil grades could face, given the oversupply situation.”

“It also provides an opportunity for large consuming nations in Asia such as China and India to expedite filling up their petroleum reserves. The capacity left this time around is much less compared to the 2014/15 crash.”

Howie Lee, economist, OCBC:

“It is not the end of the world, and the negative prices are not reflective of the entire state of the market.”

“Will this happen again? I will not bet against it. The lack of storage/expensive storage is unlikely to be resolved unless demand either improves, or the US cuts its output.

“The timeline for the US reopening its economy remains an enigma, although a conservative bet would be from July onwards. At the same time, the US is unwilling to reduce output via centralised planning as that goes against capitalism ideals”.

ING Economics:

“A key question is whether we could see a repeat of this with the June expiry next month. It is likely that storage this time next month will be even more of an issue, given the surplus environment, and so in the absence of a meaningful demand recovery, negative prices could return for June.

“Another factor which could add further downward pressure to the June contract as we approach its expiry is index rolling. Retail investors have piled into oil ETFs (exchange traded funds) at these lower prices, and so these ETFs hold a larger than usual share of the June contract open interest.”

Stephen Innes, chief market strategist, AxiCorp:

“It’s far too early to call this a trade gone wrong with reopening happening around the world amid the increased likelihood of additional short term interventions from the G-20 and OPEC+ producers.”

“But this meltdown brought to bear a level of hedging unsophistication that more resembled pen and paper 1980s trading rather than the computer-modeled era of 2020.”



Source link

Tags: coronavirus impact on crude oilcoronavirus impact on oilcoronavirus impact on US crudeCOVID-19 impact on crude oilCOVID-19 impact on oilCrude oil pricecrude oil rateGoldman Sachs on oilOCBC on oioil marketUS crude oil priceWood Mackenzie on oil
admin

admin

Next Post
Samsung Galaxy Watch 2 Gets a Dedicated App for Blood Pressure Monitoring

Samsung Galaxy Watch 2 Gets a Dedicated App for Blood Pressure Monitoring

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended.

“Critical But Stable”: Lokpal Member Tests Positve For Coronavirus

“Critical But Stable”: Lokpal Member Tests Positve For Coronavirus

April 5, 2020
Guru Purnima 2020: Famous Guru-Shishya Pairs Who Inspire Us

Guru Purnima 2020: Famous Guru-Shishya Pairs Who Inspire Us

July 3, 2020

Trending.

Norway Warns of Vaccination Risks For Sick Elderly Patients After 23 Die

Norway Warns of Vaccination Risks For Sick Elderly Patients After 23 Die

January 15, 2021
Signal Is Down Now, Possibly Because of Millions of New Users Joining

Signal Is Down Now, Possibly Because of Millions of New Users Joining

January 15, 2021
Delhi CM Arvind Kejriwal Launches Job Portal for Recruiters, Applicants

Delhi CM Arvind Kejriwal Launches Job Portal for Recruiters, Applicants

July 27, 2020
Indian Union Budget 2020

Indian Union Budget 2020

February 3, 2020
Bigg Boss 13 Finale: Shehnaz Gill, Rashami Desai, Aarti Singh And Paras Chhabra Are Out Of The Show

Bigg Boss 13 Finale: Shehnaz Gill, Rashami Desai, Aarti Singh And Paras Chhabra Are Out Of The Show

February 16, 2020
Naukri Server

We bring you the best Premium WordPress Themes that perfect for news, magazine, personal blog, etc. Check our landing page for details.

Follow Us

Categories

No Result
View All Result
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2021 JNews - Premium WordPress news & magazine theme by Jegtheme.

No Result
View All Result
  • Bank
    • IBPS PO
    • IBPS Clerk
    • IBPS SO
    • IBPS RRB PO
    • IBPS RRB Clerk
    • SBI PO
    • SBI Clerk
    • SBI SO
    • RBI Grade-B
    • RBI Assistant
    • NABARD
  • SSC
    • SSC CGL
    • SSC CHSL
    • SSC CPO
    • SSC JE
    • SSC MTS
    • SSC STENOGRAPHER
    • SSC GD
  • Insurance
    • ESIC SSO
    • ESIC UDC
    • GIC Assistant Manager
    • LIC AAO
    • LIC ADO
    • NICL
    • OICL
  • Teaching
    • TET
    • CTET
    • KVS
    • NVS
  • Railway
    • RAILWAY ALP
    • RAILWAY GROUP-D
    • RPF EXAM
    • RPSF
    • RRB ASM
    • RRB JE
    • RRB NTPC
  • State Level
    • UTTAR PRADESH
      • UP Police Constable
      • UP Police SI
      • UPPCL
      • UPSSSC
      • LMRC
      • VDO (Gram Panchayat Adhikari)
      • LEKHPAL
    • DELHI
      • Delhi Police
      • DMRC
      • DSSSB
    • MADHYA PRADESH
      • MP Patwari
    • RAJASTHAN
      • RSMSSB
      • Rajasthan Police
    • HARAYANA
      • Harayana Police
      • HSSC Group-D
    • BIHAR
      • Bihar Police Constable
      • BSPHCL
    • PUNJAB
      • PSPCL
  • Goverment ID
    • Aadhar Card
    • PAN Card
    • Voter ID
    • Passport
    • Driving License
    • Voter ID
    • Fast Tag
    • Cast Certificate
    • Birth Certificate
  • News
    • Latest Stories
    • Trending Stories
    • Business
    • Education News
    • World
    • Tech

© 2021 JNews - Premium WordPress news & magazine theme by Jegtheme.