Crude oil continues it’s schizophrenia moves during today’s trading session after reports of weakness in the post Coronavirus world.
The list below is today’s top headlines regarding the selloff in crude.
- West Texas Intermediate crude, the U.S. oil benchmark, slipped $3.19, or 8%, to trade at $36.60, its lowest level since June 16. – CNBC
- Prices for West African crude and Brent-crude contracts that are set to expire shortly have sagged, indicating a slowing resurgence in energy demand.
Slowing oil purchases by China and a resurgence in virus cases in Europe are undermining the bounceback in energy demand, which had been eviscerated by shelter-in-place orders. WSJ.com
- “Demand is down. Supply is up,” said Robert Yawger, director of energy futures at Mizuho Securities. “The economic laws of survival are being violated on both ends of the spectrum.” – CNN
- Saudi Arabia Just Crushed U.S. Crude Oil Prices Again: Over the weekend that Saudi Arabia was cutting crude prices for October shipments to both Asian and U.S. refining customers. – fool.com
This news is most likely to hurt the U.S oil producers the most, as Wallstreet sees them as being massively in debt, and they have yet to see enough Consolidation with M&A, as the industry cratered early in the year.
M&A this past month in the Oil industry.
Schlumberger sales frac fleet for a large stake in the new Liberty frac Company.