Oil prices continue to fall over worries about limited capacity to store crude worldwide
Oil prices slumped on Tuesday, extending the previous session’s slide, on worries about limited capacity to store crude worldwide and expectations that fuel demand may only recover slowly as coronavirus pandemic restrictions are gradually eased.
Strategists said part of the WTI decline is due to retail investment vehicles like exchange-traded funds selling out of the front-month June contract and buying into months later in the year to avert massive losses like last week, when WTI plummeted below zero. The main concern is that there is nowhere to store all the oil that is not being consumed due to the drop in global economic activity amid restrictions imposed around the world to curb the spread of the new coronavirus.
“While we’re starting to see Covid-19 cases ease and some countries ease restrictions, those initial moves look fairly tentative. The market’s coming round to the view there’s going to be no quick recovery in demand,” Hynes said.
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Pirates are expanding in West Africa, threatening offshore oil storageAs international oil companies grapple with a historic plunge in crude prices, a rise in piracy is also poised to threaten supply chains.
Read more »
US oil price falls heavily over storage woes in virus-hit marketUS benchmark West Texas Intermediate dropped 9.3 percent to $15.36 a barrel in Asian morning trade.
Read more »
U.S. oil futures drop nearly 25% for the sessionU.S. benchmark oil futures finished lower on Monday as concerns over the COVID-19 loss in crude demand, excess supply and a lack of global storage helped...
Read more »
Oil falls as crude in U.S. storage nears all-time highOil prices fell on Monday on signs that worldwide oil storage is filling rapidly, raising concerns that production cuts will not be fast enough to catch up with the collapse in demand from the coronavirus pandemic.
Read more »
U.S. stock futures fall as oil prices continue to tumbleU.S. stock index futures sank Monday night as crude oil prices continued to fall. Dow Jones Industrial Average futures undefined were last down about 100...
Read more »
BP revises $5.6 billion Alaska deal after oil price crashBP said on Monday it had amended some financial terms of the $5.6 billion sale of its Alaska business to privately held Hilcorp following the recent slump in oil prices, which may lead to a lower cash boost than initially planned.
Read more »