By NewsDesk, with agency report,
Global prices of oil across markets have continue sinking at opening of a new week, amid world economic lockdown as result of Coronavirus pendamic, with Brent oil price downing to $27.35 a barrel Oil, a shortfall of 73 cents.
Besides, there was also report of $14.74 a barrel shortfall from front-month May WTI contract, a depreciation of $3.53, and just as raised concern against U.S. storage facilities that may soon be full due to coronavirus pandemic destroying demands across markets.
As indicated in oil market report on Monday, before the latest development, recent drop was recorded at 21% of $14.47 a barrel, the lowest since March 1999, with experts’ prediction of worst quarterly earnings for companies since 2008 financial crisis.
Similarly from oil market report, June contract CLc2, learnt to be actively traded, fell by $1.45, and remain at $23.58 a barrel while U.S. oil storage, especially at Cushing, Oklahoma, keep rising as refiners throttle back activity because of weak demand.
Although, forecasts from Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency on the outlook for oil consumption have reinforced bearishness and oil industry has been swiftly reducing output in face of an estimated 30 per cent decline in fuel demand worldwide.
Officials from Saudi Arabia forecast global supply cuts from oil producers could total nearly 20 million bpd, including voluntary cuts from the United States and Canada and other nations, which cannot simply turn on or off production in the way most OPEC nations can.
The Head, Commodities Strategy, ING, Warren Patterson, said that that the May contract was set to expire during the week and that the bulk of open interest and volume was already in the June contract.
For Head, Oil Markets, Rystad, Bjornar Tonhaugen, oil production had continue relatively unscathed, with storage filling up while world use less oil, with producers been left with trouble of how current situation of the market would translate into prices.
Currently, flouting products in tankers has been estimated at a record 160 million barrels, with other markets remaining cautious as first-quarter earnings season gets underway.
Data from refiners showed analysts predicted STOXX 600 firms to post a 22 per cent plunge in earnings, the steepest since the 2008 global financial meltdown as Japanese exportation witness decline in March after U.S.-bound shipments, including cars, fell since 2011.