• 3 minutes e-car sales collapse
  • 7 minutes Energy Armageddon
  • 11 minutes Russia Says Europe Will Struggle To Replace Its Oil Products
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 hours Cummins showcases 15L fuel-agnostic engine platform; hydrogen, diesel, biogas 16 March 2023
  • 10 hours America Is Exceptional in Its Political Divide
  • 5 days Gazprom and Rosneft super result
  • 21 days How Many Wells From 1 Onshore Rig?
Standard Chartered: Oil Prices Likely To Head Higher

Standard Chartered: Oil Prices Likely To Head Higher

Commodity experts at Standard Chartered…

Will Brent Break Below $70 This Year?

Will Brent Break Below $70 This Year?

Brent slumped to $70 on…

Will We See A Return Of Triple Digit Oil This Year?

Will We See A Return Of Triple Digit Oil This Year?

Oil prices have effectively erased…

ZeroHedge

ZeroHedge

The leading economics blog online covering financial issues, geopolitics and trading.

More Info

Premium Content

Gasoline Futures Fall To $0.50 As Demand Plummets

Gasoline futures in New York fell as much as 13 percent to $0.50 a gallon, the lowest level since the current contract started trading in 2005.

Source: Bloomberg

The previous gasoline contract last traded that low in 2001...

Source: Bloomberg

All of which means Americans - on average - can expect gas-prices at the pump to plunge below $2/gallon very soon...

Source: Bloomberg

Energy prices slid toward this multi-decade low on plunging demand due to the economic fallout from the coronavirus crisis, and as prospects for a OPEC-Texas production deal faded.

“The government is taking a ‘whatever it takes’ approach,” said Marshall Steeves, an analyst at IHS Markit.

That doesn’t change the fact that demand destruction is going to continue. There are still so many unknowns on the demand front. The duration of this economic shutdown is so uncertain that it’s making me believe the bottom may not be in yet.”

As Bloomberg notes, the prospects for the oil market remain bleak with more nations going into lockdown to tackle the virus. At the same time, supply is surging. The chance that either Saudi Arabia or Russia will back down from their price war seems remote, with President Vladimir Putin unlikely to submit to what he sees as the kingdom’s oil blackmail, according to Kremlin watchers.

Related: Not Even Higher Oil Prices Can Save U.S. Shale

Even if crude demand recovers to normal levels by the middle of the year, 2020 is still on course to suffer the biggest decline in consumption since reliable records started in the mid-1960s.

ADVERTISEMENT

“We are now looking at a scale of surplus in the second quarter we probably never have seen before,” said Bjarne Schieldrop, chief commodities analyst at SEB.

Until now, the biggest annual contraction was recorded in 1980, when it tumbled by 2.6 million barrels a day as the global economy reeled under the impact of the second oil crisis.

By Zerohedge.com 

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News