What is happening in the energy market today is nothing but agony. The fall in demand and the catastrophic lack of free storage have led to extreme volatility of oil assets. For the American WTI crude oil, the trading session began with the 10% growth, then the asset began to quickly lose its price.
At 7.20 am Moscow time, the June contract for WTI crude oil was trading at $ 10 per barrel; from the start of the session the drop amounted to 8.5%.
At the same time, June futures for the European crude oil have fallen by14.5% and were trading at around $ 16.52. The last time the market observed similar prices 18 years ago.
We recall that on Monday, the market was shocked by negative values for May WTI contracts. On Tuesday, the drop also affected the June Brent contracts. This means that such values in the energy market are not an accidental craze, but an emerging and growing market trend.
For analysts, the manufacturers and governments seem slow and insufficiently to respond.
Experts believe that the current decline in demand will soon force oil companies to stop extraction of “black gold”.
An authoritative American publication The Wall Street Journal believes that in the context of the falling demand, Donald Trump will be forced to take an extremely unpopular measure – to impose duties on oil.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group