It is still all about . After yesterday’s jaw-dropping oil price collapse with the expiring May contract, many investors thought that the impact on the rest of the curve was limited. Today, traders are saying that they are not waiting till the next expiry to make oil prices crumble again. Except for the US putting 75 million barrels of crude into its strategic reserve, there is nothing to make energy traders believe that storage constraints, rising inventories, and demand concerns will be alleviated.
Pressure on oil prices could also stem from rolling contract issues that will happen at the beginning of next month with the oil ETF rollovers. With US storage tanks likely to get topped off within a month, too many negative drivers remain in place for anyone to start to have a constructive view of oil prices in the coming weeks.
Earlier in London, WTI crude collapsed 40% and triggered a trading halt after falling below $12 a barrel. Now trading comfortably in the mid-teens, WTI…
