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Crude extended its slide below $11 a barrel after the United States Oil Fund sold all its June WTI contracts, widening the July spread. US producers began delivering crude to the emergency stockpile as storage ran out, and South Korea and Singapore faced congested storage.
Oil has fallen more than 80% this year as coronavirus demand collapsed.
Storage exhaustion and collapsing demand point to deep energy price weakness, which lowers biofuel feedstock values and weighs on agricultural commodity prices. Lower diesel and fuel costs also reduce freight expenses for feed.
biznews.comAlec HoggApr 28, 2020After 565 past bearish macro events, Crude Oil (WTI) moved a median -1.4% over 5 sessions (41% higher; middle half -5.9% to +3.0%), and -0.5% over 20.
After 312 past bearish macro events, Crude Oil (Brent) moved a median -1.7% over 5 sessions (38% higher; middle half -5.4% to +2.3%), and -1.7% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
The April 28 storage-driven slump below $11 set a very low base, so the subsequent rebound produced a large percentage move.
