Oil price crash is perfectly rational, investor Howard Marks says - Business Insider

and the reduction in demand for the commodity during the ongoing coronavirus pandemic has tanked prices in recent days.

Negative US oil prices, the lowest international oil prices since 1999 and no place to store oil has spooked investors across both sides of the Atlantic, but one billionaire investor thinks it is no big deal. on Wednesday: "It's not a panic. The move is completely rational." US oil prices turned negative for the first time in history

Marks pointed out that the lack of storage for oil has caused the crash rather than weakening fundamentals. The WTI May contract fell as low a -$40.32 a barrel, meaning traders had to pay others to take the contracts off their hands. hitting a low of $15.99 per barrel early in trading. It has since rebounded to positive territory but remains near multi-decade lows at $19.63 as of 7.00 a.m. ET.

I’d agree with that. When the US became an exporter, thought that would do it but no. When Aramco IPO’d, then I thought definitely but no again. But now, because people didn’t want to take physical delivery in May the price tanks. Fundamental fuses need a flash catalyst to light

It's a rational crash

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Oil price crash: Record amounts of oil stored in tankers amid pandemic - Business Insider60% more oil is being stored at sea in oil tankers than the previous record high during the 2009 financial crisis. Wow What could go wrong? Brilliant moves because buying on the spot Market is going to mean huge profits in the future... The Futures Market
Source: BusinessInsider - 🏆 729. / 51 Read more »

Oil price: Brent crude follows WTI down amid supply glut, storage woes - Business InsiderBrent slid below $20 a barrel on Tuesday as sentiment from US oil prices turning negative the first time rippled through all markets. What the hell does zero mean? We don’t pay for fuel?
Source: BusinessInsider - 🏆 729. / 51 Read more »

Crude oil is back above $1 after the oil market's worst day on recordThe global coronavirus pandemic has brought countries around the world to a standstill. Here's the latest updates on worldwide Covid-19 cases, deaths, government responses, and more. You’re reporting this but have no context into what it means. Sad. it's currently at -4.51 alternative energy is going to have a hard time competing.
Source: CNN - 🏆 4. / 95 Read more »