Read on Twitter
#WTI #CrudeOil futures for May,expiring tomorrow,tanked 57%,to $7.98 per barrel
June contract,expiring on 19thMay, traded@ $26.62/barrel
July futures,traded@ $28/barrel
And all this,despite #OPEC's decision to cut supply by 9.7 million barrels a day,wef 1st May2020
#OilCrash
June contract,expiring on 19thMay, traded@ $26.62/barrel
July futures,traded@ $28/barrel
And all this,despite #OPEC's decision to cut supply by 9.7 million barrels a day,wef 1st May2020
#OilCrash
Normally,spread between #Spot &one month forward contract,is 40-50 cents
This time,spread is $10-12,implying weakness in #crudeoil,will continue
Global demand for #Oil in April 2020,was lower by 29 million barrels per day,Vs April 2019
#COVIDー19&global #lockdown, playing out
This time,spread is $10-12,implying weakness in #crudeoil,will continue
Global demand for #Oil in April 2020,was lower by 29 million barrels per day,Vs April 2019
#COVIDー19&global #lockdown, playing out
Indian #Crude basket is a derived basket of #crudeoil comprising #sourcrude(Dubai&Oman)&sweet crude(Brent)
Indian basket,aligned to #Brent crude,has fallen too,but not as much as #WTI crude
April 2020 #Brent@$20.92 per barrel March $32.01
Feb $55.70
Jan 2020@ $63.83
#OilCrash
Indian basket,aligned to #Brent crude,has fallen too,but not as much as #WTI crude
April 2020 #Brent@$20.92 per barrel March $32.01
Feb $55.70
Jan 2020@ $63.83
#OilCrash
#Exxon&its partners, #HessCorp &China's #CNOOC,started production at the Stabroek block in Guyana in December 2019; #StabroekTripletail #Oil block,the 16th discovery by Exxon group, brings total recoverable oil&gas reserves in #GuyanaOffshore,to over #8BillionBarrels
#OilCrash
#OilCrash
Unbelievable
!
Oil futures for May have slipped to $0.01 per barrel,even as i tweet this,on fear of rapidly falling global storage facilities caused by #coronavirus;Fear in market that, US storage facility will run out of space by mid-May
In Canada, #WTICrude,trading negative
!Oil futures for May have slipped to $0.01 per barrel,even as i tweet this,on fear of rapidly falling global storage facilities caused by #coronavirus;Fear in market that, US storage facility will run out of space by mid-May
In Canada, #WTICrude,trading negative
Traders have hired vessels just to anchor them&fill them with the excess oil;A record 160 million barrels is floating in tankers,around the world
Cushing at #Oklahoma is out of capacity,with stockpiles already@ 61 million barrels;There are fears, #Oil may be dumped into the ocean
Cushing at #Oklahoma is out of capacity,with stockpiles already@ 61 million barrels;There are fears, #Oil may be dumped into the ocean
Not a big fan,but #MarcFaber is the only one who said in 2016, #Oil could collapse to $15 per barrel
Will it stay at today's crazy level of $0.01?No-As Faber said,if Oil stays at sub $50 or $60 per barrel for 3 yrs in a row, #SaudiArabia will go kaput&they will not let that happen
Will it stay at today's crazy level of $0.01?No-As Faber said,if Oil stays at sub $50 or $60 per barrel for 3 yrs in a row, #SaudiArabia will go kaput&they will not let that happen
#SaudiArabia,accounting for 15% of world output,is largest #Oil producer globally,but of late,it is not Saudi led #OPEC,but non OPEC member, #Russia,the 2nd largest Oil producer,that has been dictating direction of global #CrudeOil price!
And Russia does not like production cuts
And Russia does not like production cuts
While Russia &OPEC have,agreed to slash Oil production by a steep 9.7 million barrels per day,for how long Russia will toe the Saudi line in OPEC,remains to be seen.. #Putin has never really favoured supply cuts&he will ensure Russia starts pumping record #Crude,sooner than later!
In a nutshell,global #CrudeOil price will be determined by Saudis,Putin's hard nosed Russia&ofcourse,the USA-ahead of elections,Trump would like to keep #CrudeOil prices low,but if with help from Saudis,he keeps them too low,US Oil refiners will go bust,pushing US into recession!
While weak global demand,post #coronavirus pandemic,will not allow #CrudeOil to breach upper limit of $50 or $60,the downside too,is limited,as #Trump knows,very low prices could sound death knell of US #Shale wells!Oil may settle in $30-$50 range,but with heightened volatility!
