Oil splash: what's going on now?
The price of oil has plummeted again. What happened to the WTI and Brent prices?
The price of oil has again taken the downward path, also negatively inaugurating the new week.
The WTI price, in particular, recorded the worst performances, coming to burn well above 10 percentage points. The Brent reds are less evident, however, which has lost more than 3%.
Fluctuations in oil prices have returned to attracting the attention of a market now in shock given what has happened in recent weeks. After the recovery attempt of the past few days, the prices have again taken the downward path and the situation has worsened again.
Once again, the lethal mix of elements that has caused a real shock on the energy market has caused the latest fluctuations in oil prices.
The global increase in stocks and fears regarding the collapse of demand caused by the coronavirus have returned to weigh on the WTI price and, albeit slightly, on the Brent price.
The agreement on the cuts found some time ago by OPEC + and about to enter into force on May 1, has failed in the intent to attract the sellers and things have gotten worse and worse. Not long ago, the price of oil actually fell into negative territory for the first time in history.
All this while the imbalance of the market in favor of the offer led to the question of where the excess black gold stocks will be crammed, given that many companies have almost reached their maximum storage capacity.
What to expect now?
According to Goldman Sachs analysts, WTI and Brent prices may continue to be affected by this global context. The global storage capacity of the stocks will be complete in 3 or 4 weeks which will lead many producers to stop to compensate (as far as possible) for losses in demand.
All this will only increase volatility: the price of oil will continue to drop at least until the market returns to being balanced.