RE: TA / Chart - Wall st..22 Apr 2020 16:57
Why Oil at Negative $100 Isn’t a Crazy Bet Anymore.....
rbiting hundreds of miles above the Earth, the Sentinel-1 satellites are the eyes in the sky that show why U.S. oil prices dropped below zero and why much of the world is likely to follow.
The satellite bounces radar signals off the massive metal tanks that store oil and that data is used to calculate how much crude is inside. It’s coming back with an alarming message: oil storage is running out.
It’s something that’s never happened before, and the market is only beginning to guess at what it’ll mean. Experts say it could be a matter of weeks before there’s no more room to store crude, an event called in industry parlance the “tank tops.” The result would be oil prices near zero in many parts of the world, and in some cases they could go negative.
“We are on a path to global tank tops in late May or early June,” said Florian Thaler at Oilx, a research firm which uses the satellite data.