FAST FIVE: After Worst Quarter Ever, WTI Extends Losses On Massive Crude & Gasoline Build
After Worst Quarter Ever, WTI Extends Losses On Massive Crude & Gasoline Build After its worst quarter ever, as COVID-19 lockdowns crushed demand, raising fears about overflowing storage tanks amid a price war that has flooded the market with extra supply, all eyes are glued to new inventory data as Standard Chartered analysts, including Emily Ashford warned in a report, oil tanks around the world could fill in six weeks, a move that will likely force significant production shut-downs, “Huge inventory builds, potentially exhausting spare storage capacity, will mean that market balance requires an unprecedented output shutdown by producers,” they wrote.
“I would expect the numbers to be supersized and challenge multi-year highs/lows on multiple data points.
Of course, I have been expecting big numbers for the past couple week, but the fireworks have not happened.
That will leave a lot of crude oil on the sidelines … EIA crude oil storage has been higher for nine weeks in a row.
and it with a huge crude and gasoline build last week Source: Bloomberg WTI was trading just above $20.20 ahead of the API data and extended losses after.