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Oil posted its worst quarter on record, with New York futures ending the quarter down more than 66%. Brent and WTI held above $20 a barrel despite signs of distress in the physical market.
The gap between paper and physical barrels widened to multi-decade highs in some cases.
Wide gaps between futures and physical prices suggest financial flows are propping up futures, which can make crude price signals less reliable. Feed buyers should watch energy costs closely, as the physical market distress could lead to sharp swings.
bloomberg.comCatherine NgaiMar 30, 2020Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
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.
Worst-ever quarter with a physical market in distress shows glut and storage pressure weighing on prices into quarter end.
Quarter-end worst-ever performance and physical market distress (paper vs physical gap) point to expiry and quarter-end liquidation pressure on Brent.
