I expect the storage situation to be even worse in may than it is right now which means that when the June contract goes towards its final showing the heat will go pizza oven. The WTI crash in April will seem quaint and some people will ask if we are in a new normal. We are not. This is a mad year and we won’t have solace for many more months. But eventually, physical oversupply and the incapacity to store one more drop of oil will take a toll among all producers. And the demand will come back. Not as much as it was before COVID-19 but the sucking sound will nevertheless be audible.
Crude whipsawed near $11 a barrel after a major index tracked by billions of dollars in funds bailed out of near-term contracts for fear prices may turn negative again.