• 4 minutes Nord Stream 2 Halt Possible Over Navalny Poisoning
  • 8 minutes America Could Go Fully Electric Right Now
  • 11 minutes JP Morgan says investors should prepare for rising odds of Trump win
  • 12 mins US after 4 more years of Trump?
  • 2 days Daniel Yergin Book is a Reality Check on Energy
  • 1 hour Something wicked this way comes
  • 3 days Permian in for Prosperous and Bright Future
  • 12 mins Oil giants partner with environmental group to track Permian Basin's methane emissions
  • 2 hours Why NG falling n crude up?
  • 2 days Famine, Economic Collapse of China on the Horizon?
  • 3 days Gepthermal fracking: how to confuse a greenie
  • 3 days YPF to redeploy rigs in Vaca Muerta on export potential
  • 3 days Top HHS official takes leave of absence after Facebook rant about CDC conspiracies
  • 18 hours The Perfect Solution To Remove Conflict Problems In The South China East Asia Sea
  • 2 days Open letter from Politico about US-russian relations
  • 4 days Surviving without coal is a challenge!!
Oil Prices Tank On Global Demand Concerns

Oil Prices Tank On Global Demand Concerns

Oil prices plunged on Tuesday…

Russia’s Central Bank Warns That Oil Could Slide To $25

Russia’s Central Bank Warns That Oil Could Slide To $25

Russia’s central bank has warned…

ZeroHedge

ZeroHedge

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

More Info

Premium Content

Oil Jumps On Expectations Of Slowing Inventory Builds

Hot on the heels of Goldman's bullish reversal on the oil sector, in which the bank's commodity strategist Damien Courvalin said on Friday that "it now appears likely that the market is passing its test on storage capacity" and projected that the recent rally can extend further in May, back to cash-cost levels ($25/bbl for WTI), albeit with still-high price volatility...

... oil is storming higher after initially sinking lower, with the June WTI contract rising as much as 3.9% to $20.55/bbl, erasing earlier losses, while Brent crude briefly rising above $27/bbl, more than $1.4 from session lows.

The catalyst for the sharp move higher appears to be a report that inventories at Cushing rose only 1.8MM bbl last week, which if confirmed, would represent the smallest increase since mid-March, and would indicate that the supply glut is starting to ease.

It also demonstrates just how sensitive the market has become to any changes from the prevailing narrative in which global storage space could potentially fill as soon as late May, early June. Today's rally also comes following a Friday report from Morgan Stanley according to which there are now more than 350 tankers currently being used for floating oil (crude and product) storage globally...

... With total oil held in floating storage rising to 375mn bbl, up 220mn bbl from mid-March and 230mn bbl from the start of the year.  The question then becomes whether we have hit an inflection point in gasoline demand, something which the following charts from Morgan Stanley showing an increase in mobility trends, would suggest is indeed the case.

By Zerohedge.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News