{"id":52519,"date":"2020-04-15T09:57:19","date_gmt":"2020-04-15T14:57:19","guid":{"rendered":"https:\/\/olduvai.ca\/?p=52519"},"modified":"2020-04-15T09:57:23","modified_gmt":"2020-04-15T14:57:23","slug":"wti-extends-losses-below-20-after-record-surge-in-crude-inventories","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=52519","title":{"rendered":"WTI Extends Losses Below $20 After Record Surge In Crude Inventories"},"content":{"rendered":"\n

WTI Extends Losses Below $20 After Record Surge In Crude Inventories<\/a><\/h3>\n\n\n\n

WTI crashed below $20 (tagging $19.20) overnight after API reported<\/a> huge inventory builds and was not helped by comments from the International Energy Agency that a historic production cut deal won\u2019t be enough to counter a record demand slump this year.<\/p>\n\n\n\n

This appears to confirm\u00a0a key gauge of the oil market\u2019s health which is at its weakest in more than a decade\u00a0<\/strong>as supplies build and futures contracts roll over. West Texas Intermediate crude for May delivery traded at more than $7 a barrel below its June contract on Tuesday,\u00a0the deepest contango since 2009.<\/strong>\u00a0The May contract is nearing expiration and exchange-traded funds, including the\u00a0United States\u00a0Oil Fund, have been selling front-month contracts and buying second-month futures.<\/p>\n\n\n\n

\"\"\/
Source: Bloomberg<\/em><\/figcaption><\/figure>\n\n\n\n

Simply put, this is an indication of extreme oversupply.<\/strong><\/p>\n\n\n\n

\u201cAt least over the next month or so, before these cuts have an opportunity to kick in, we are going to be very stressed on inventories,\u201d<\/strong><\/em> Bart Melek, head of commodity strategy at TD Securities, said by telephone.<\/p><\/blockquote>\n\n\n\n

And so all eyes are once again on the inventories for any positive signs…<\/p>\n\n\n\n

API<\/strong><\/p>\n\n\n\n