Is Crude Oil Market Ready for Second Wave of Coronavirus?
EnHelix Software
Startups
3 years ago
1 QCP
April 2020 crude oil demand fell to 8.0 MMb/d due to the first wave of Coronavirus, and many market analysts have started to model how the second Coronavirus wave will look like for the global crude oil market.
Since April 2020, the crude price differentials have narrowed as drivers and freight demand have jumped higher. The super contango crude spreads that we have witnessed back in May 2020 have since flattened, and forward price curves are flat and with slightly backwardation patterns. The less contango the curves usually translated to lower freight costs, and that’s good news to logistics sectors and even broader sections like eCommerce and manufacturers.
The crude market looks fairly balanced with physical and financial Brent differentials narrows based on ICE indexes at the time of this writing. However, with the United States COVID cases on the rise and WTI fluctuating between $38 and $40. It will be interesting to watch the weekly crude and petroleum inventory levels in the coming weeks.
Most market analysts already factored in a high chance of a coronavirus, the second wave hitting the global market starting as early as November 2020, peak at February 2021, and starting to recover around May 2021, which follows the same pattern as the first coronavirus first wave.
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https://www.enhelix.com/crude-oil-market-second-wave-coronavirus/
Since April 2020, the crude price differentials have narrowed as drivers and freight demand have jumped higher. The super contango crude spreads that we have witnessed back in May 2020 have since flattened, and forward price curves are flat and with slightly backwardation patterns. The less contango the curves usually translated to lower freight costs, and that’s good news to logistics sectors and even broader sections like eCommerce and manufacturers.
The crude market looks fairly balanced with physical and financial Brent differentials narrows based on ICE indexes at the time of this writing. However, with the United States COVID cases on the rise and WTI fluctuating between $38 and $40. It will be interesting to watch the weekly crude and petroleum inventory levels in the coming weeks.
Most market analysts already factored in a high chance of a coronavirus, the second wave hitting the global market starting as early as November 2020, peak at February 2021, and starting to recover around May 2021, which follows the same pattern as the first coronavirus first wave.
...
https://www.enhelix.com/crude-oil-market-second-wave-coronavirus/
- Market analysis
- Covid-19
- Oil market
- Crude market
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