/biz/ - Business & Finance

>>18956447
To entertain you only lightly, because of the simple fact that oil demand will be lower. In opened areas, traffic is still well below normal. Social distancing is fundamentally changing many businesses, making experiencing them less pleasurable and profitable and lowering capacity. The economy opening back up doesn't mean much because social distancing and general fear is holding people back by regulation and now fear of lawsuits. Combine this with the death of certain businesses and transition of some work to home services also lowers demand for oil. Furthermore the oil crisis started prior to corona and lockdowns, this and the oil war has only accelerated what was a "normal" level of crisis to cataclysmic levels. Even IF demand returned to normal for oil, then production would have to lower so demand overtakes supply. Unfortunately for oil, production cuts are not fully working, many are being ignored, the rates of shutting down operations are overall not lowering as expected and those who are complying are trying to do a bit more as they can meaning they are basically fearing for their lives. Trump can tweet about oil and demand all he wants, but oil usage is not something he can alter, only speculative price through sentiment. And when futures rollover, sentiment disappears and you are only left with actual revealed price. Which we saw April perform. Furthermore, due to all supply issues even IF demand overtook supply in the coming months we would still have such a monster backlog that oil prices will remain volatile and low enough for years which makes tankers extraordinary (recently consensus seems to be don't expect recovery for oil to "return to normal" until 2022 at earliest).

Even if oil tankers transport and don't park full time after we start seeing improvement, the backlog of supply ensures tons of transportation and holding as the market continually adjusts itself. Tankers will thrive.

>>18732902
I sure af am not selling, but I am concerned over what just happened here with the market in general. This was so weird. Opposing sectors and companies were all going down at the same time, it is like if some huge diversified fund or something just sold off everything and hit everybody.

>>18732920
Suit yourself, I been riding oil stocks for weeks and tankers similarly. It is a clown world where both go up at the same time.

>>18732937
Maybe because it is actually good even if it was shilled?