What to Watch in the Oil Market This Week
The oil market downturn continued last week, with one market-watcher describing it as “insane” and recalling memories of the 1980s price collapse. Keep reading to learn what panelists interviewed by Rigzone with pay particularly close attention to this week.
Andrew Goldstein, President, Atlas Commodities LLC: Look for continued pressure on the price of crude oil and gasoline. Crude oil is down 20 percent week-to-date (late Friday morning), which includes a 25-percent rally on March 19. As the U.S. moves toward social distancing, quarantine and shelter-in-place, not only will the consumption of crude oil via the airlines continue to decrease, but the demand for gasoline at the pumps will decrease as well.
Campbell Faulkner, Senior Vice President, Chief Data Analyst, OTC Global Holdings: Looking forward to the short-term, it looks like volatility is the expectation and the sensitivity is higher than normal to the news cycle.
Steve Blair, Senior Account Executive, RCG Division of Marex Spectron: Gasoline crack spreads for the nearby futures months collapsed and even went negative for a brief period before sustaining a fairly substantial rally on Tuesday and Wednesday (of last week). Crack spreads, however, have again moved lower – with the weakest showing an almost $3 decline as of this writing (March 19, 2020). Diesel/Heat cracks are also declining again but not to the degree of the gas cracks. These need to be watched as a guide to other movements in the petroleum sector.
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