The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksRDSB.L Share News (RDSB)

  • There is currently no data for RDSB

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Historic rout in WTI futures amid fire sale ahead of expiry

Mon, 20th Apr 2020 21:38

(Sharecast News) - US crude oil futures crashed at the start of the week with the price of West Texas Intermediate falling below zero for the first time ever.
A day before they were due to expire, after the close of trading in the US on Tuesday, and faced with increasingly scarce storage capacity, a firesale ensued as traders opted to dump their holdings rather than having to take physical delivery.

As of 2059 GMT, May WTI was trading 310.45% lower at -$38.45.

"Trading desks globally gave up on the May contract a few days back and volume has collapsed. CME Group data indicates volume at 122k for May contract vs 780k for Jun," said Neil Wilson, chief market analyst at Markets.com.

"No one wants oil now. But it's also fair to assume that with demand not able to recover and the US unable to agree on output curbs we will also see the June contract come in sharply to the mid-teens also."

On 12 April, the Organisation of Petroleum Exporting Countries and other of the world's major oil producers agreed to a 14.7m barrel a day reduction in their combined output.

But the curbs agreed to by OPEC+ were not due to start until May and in any case, at its trough the projected drop in global oil demand was expected to nearly double the agreed ouput cuts in size.

Compounding matters, according to the Energy Information Administration, as of 10 April US oil output qas at 12.3m b/d and just a shade below its record level given the time lags between lower oil prices and output reductions by shale oil producers.

On the other hand, at the current rate at which stockpiles were building up, Rabobank estimated that storage tanks at Cushing, Oklahoma, the delivery and pricing point for WTI, would max out by early June.

Meanwhile, the cost of rolling over futures contracts was also near its highest in decades, analysts at Capital Economics pointed out.

Nevertheless, Capital Economics also said that assuming that economic activity began to recover in the back half of 2020, then both Brent and WTI prices should head back towards $45 a barrel.

The Railroad Commission of Texas, the industry watchdog in that state, was set to decide whether to limit output from the region on 21 April.

It had also been speculated recently that the US administration might soon move to incentivise producers to keep oil in the ground, possibly through purchases for the country's strategic petroleum reserves.
More News
8 Feb 2021 15:28

Amazon to buy 50% of energy produced by Dutch offshore wind farm

(Sharecast News) - Amazon announced on Monday that it plans to buy half of the energy produced by a new wind farm in the Netherlands.

Read more
8 Feb 2021 13:51

Monday broker round-up

(Sharecast News) - Flutter Entertainment: Morgan Stanley upgrades to overweight with a target price of 17,400p.

Read more
12 Jan 2021 13:28

330 jobs set to go at Royal Dutch Shell's North Sea operations

(Sharecast News) - Oil giant Royal Dutch Shell announced plans to cut 330 mostly administrative jobs in Aberdeen as it reacts to weaker global demand for oil.

Read more
5 Jan 2021 16:23

Brent futures find a bid after report of compromise OPEC-Russia deal

(Sharecast News) - Crude oil futures found a bid in late trading on Tuesday following reports of a compromise deal between the Organisation of Petroleum Exporting Countries and Russia.

Read more
2 Dec 2020 18:12

Sector movers: Oil&Gas stocks and Banks pace gains

(Sharecast News) - Commodity and financial stocks were again at the top of the leaderboard in the middle of the week, helped by ongoing optimism around the macroeconomic outlook for 2021.

Read more
2 Dec 2020 13:34

JPM upgrades Shell to 'overweight' on positive outlook

(Sharecast News) - JP Morgan upgraded Royal Dutch Shell shares to 'overweight; and increased its price target on the oil company as it took a positive view of the UK oil sector.

Read more
2 Dec 2020 13:11

Wednesday broker round-up

(Sharecast News) - Royal Dutch Shell A: JP Morgan upgrades to overweight with a target price of 1,700p.

Read more
1 Dec 2020 08:45

Shell faces Dutch court pollution case brought forward by environmentalists

(Sharecast News) - Royal Dutch Shell to face a Dutch court on Tuesday on a case brought forward by environmentalists demanding a reduction in oil companies' involvement with fossil fuels.

Read more
16 Nov 2020 12:31

OPEC+ considers further action to support oil market in 2021

(Sharecast News) - The Organization of Petroleum Exporting Countries and allies started meetings on Monday to consider new measures to support the oil market in 2021 as the pandemic continues to impact demand and prices.

Read more
3 Nov 2020 10:50

Morgan Stanley upgrades Shell and BP

(Sharecast News) - Morgan Stanley upgraded its recommendation for shares of Shell from 'equalweight' to 'overweight', telling clients that the oil major's new distribution policy revealed insiders confidence in the firm's ability to throw off cash.

Read more
30 Oct 2020 13:40

Friday broker round-up

(Sharecast News) - Royal Dutch Shell: Barclays upgrades to equal weight.

Read more
25 Oct 2020 12:39

Sunday newspaper round-up: Coronavirus vaccine, UK-US trade, Shell

(Sharecast News) - Plans are being drawn up for frontline NHS staff to receive a coronavirus vaccine within weeks, as the Government moves to accelerate the timetable for a mass roll-out. An email sent by an NHS Trust chief to his staff, seen by The Mail on Sunday, reveals the Health Service is preparing for a national vaccination programme before Christmas. - Mail on Sunday

Read more
12 Oct 2020 14:15

Goldman bullish on oil and natural gas prices even if Democrats take White House

(Sharecast News) - Goldman Sachs remains 'bullish' on the outlook for oil and natural gas prices, even in the event of a victory for Democrats at the next US Presidential election on 3 November.

Read more
12 Oct 2020 14:04

Oil output from US Gulf and Libya's El Sharara recovering

(Sharecast News) - Crude oil futures slipped lower at the start of the week as production restarted in the US Gulf of Mexico after Hurricane Delta left the region and amid reports that output from Libya was coming back online more quickly than anticipated.

Read more
7 Oct 2020 14:58

Morgan Stanley cuts targets for Shell and BP, sees short-term pressure on shares

(Sharecast News) - Analysts at Morgan Stanley said that upside to share prices for for Big Oil stocks was beginning to materialise, even as it warned clients that it was best to wait before turning more positive on the space.

Read more

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.