/biz/ - Business & Finance

>>19137791
>>19138074
>>19138310
I want to address this article now. Yes, demand is returning, yes, US oil storage saw a draw of 700k last week. However, let me address more. Article agrees that demand has recovered much less than normalcy. Furthermore, India has not yet even tried to return to normal. Chinese traffic data has been manipulated, and China is issuing mass testing as we speak to see if corona is re-spreading so they can contemplate (if it does) lockdown number 2. Our draw on Cushing right now is also due to not taking on the millions of barrels of Saudi oil sitting on our coast, which again is first in line and would be over capacity if fully accepted...which it is being accepted, just delayed by us. World supply went up by over 7 million the same week according to API report which is looking at more than just the US unlike the report your article cites (carefully see that it only addresses "US Crude Inventory").

In other words, our storage situation is worse in actuality despite the draw, and world storage has yet to see a decline. Your article does explain why SPECULATIVE prices would rise, however, in terms of barrels due for delivery it would not explain avoiding a repeat of May contracts since storage (which is the crux of price decrease) has in fact worsened and global demand (not US demand) has not risen nearly as much as US has...which is already lower than expected for US. Also note we are a huge exporter of oil, and check again global supply and demand situation.

I cannot see how oil won't collapse this week. The EIA report (which this article is based on) is both misleading and avoids examining macroeconomics which affects our price as well. This is the case I am making and sticking with it.