The Oil prices fell on Monday in Asian trade. During the Slump in demand because of the corona crisis, concerns have recently increased on the US market that the oil deposits there may be reaching their capacity limits.
In the morning it cost a barrel (159 liters) of the North Sea variety Brent $ 27.64. That was 44 cents less than on Friday. The price of a barrel of American WTI dropped $ 3.59 to $ 14.68, a low for 21 years.
Of the Burglary the price of US oil has been almost 75 percent since the beginning of the year. Concerns about crude oil storage caused prices to plummet compared to North Sea oil, where discounts last year were only 68 percent.
As market watchers from the Australia & New Zealand Banking Group reported, inventory in Cushing rose, Oklahoma, a whopping 50 percent since the beginning of March. “We still have hope of a recovery at the end of the year,” said the experts. The news agency reported on Saturday Bloomberg Already in a circular message that capacities are also becoming scarce at the state oil company Mex. It is therefore tried to switch to chartered tankers.
Of the Burglary The global economy as a result of global efforts to curb the virus pandemic has been supported by new figures over the past week. As China had announced on Friday that economic output fell for the first time in decades. Market observers saw the numbers as a clue to what Europe and North America still to come.
However, the cut in production from leading oil nations, which had raised hopes of a recovery in prices over the past few weeks, was loud enough David Lennox, Analyst at Fat Prophets, was not out to meet the demand destroyed by Covid-19. “We need to see a global peak in the virus crisis to get a clearer picture of how much demand will be lost.”
Meanwhile, tomorrow’s US oil contract is due to change hands from May to June. Despite discounts, the market price for the June contract was recently significantly above that of the previous month. In the morning it was $ 23.69, $ 1.34 below the previous day’s value.
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