All hell is breaking loose in oil markets. Monday’s historic selloff with the WTI May futures contract was a technical situation that then had some whopping impact on Tuesday’s rout and is having an impact on the entire overall curve and across all asset classes. Yesterday’s extreme selling of spiraled even lower after the Texas Railroad Commission (oil regulator) was split on limiting oil output and delayed any vote on curtailing output until May 5 at the earliest.
OPEC also reportedly was trying to have a conference call, but Saudi Arabia, Kuwait and UAE were expected to not take part. The speculation was that OPEC could hold a meeting on May 10th to discuss deeper production cuts.
Oil prices are collapsing because no one wants to be the first one on the production cut dance floor. Texas punted their decision and with OPEC not showing any urgency, that pretty much means the world will run out of room to store oil by the second week…
