US energy Dept to lease space for energy companies to store crude oil – Reuters
|The U Department of Energy plans to lease space for energy companies to store crude oil in US strategic petroleum reserve, according to Reuters, as the world's demand for energy drys up in the midst of the price war and COVID-19.
"As shale plays struggle to cover costs, two of the largest drillers have asked Texas regulators to consider issuing an order to cut crude output in response to the crisis. China's recovery may be lending support, as teapots' run rates continue to rise, but it remains unlikely that the Middle Kingdom's appetite will remain elevated as the shock cascades to consumption in the rest-of-world," analysts at TD Securities explained.
Storm clouds still loom on the horizon, as the potential for a new global opec+ would be very constructive long term but would nonetheless be vastly outweighed by the demand destruction and still-massive oversupply. in this context, we do not anticipate significant CTA flow in the complex as momentum signals remain firmly entrenched to the downside.
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US Pres. Trump: Raised issue of oil prices with Russian President Putin
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