47 And Counting

 Yet oil demand destruction is real, and while we all know as the President said that this is going to end, the question is still when. Reuter reported that Reuters) - Tanker charter rates have plunged more than 80% as the coronavirus outbreak slams the brakes on major economies, costing the sector hundreds of millions of dollars in lost business, a senior shipping industry official said. While some of the revenue is gone for good, a trade rebound could put the sector back into calmer waters later this year, International Chamber of Shipping (ICS) Secretary-General Guy Platten told Reuters in an interview on Wednesday. The ICS is the primary trade association for merchant shipowners and operators, representing more than 80% of the world's merchant fleet.

Platten called the outbreak of the COVID-19 virus "hugely disruptive" for the shipping sector, triggering a massive decrease of raw material imports in economic powerhouse China because factories had stopped and are only starting to recover, according to Reuters.

Demand fears overshadowed the EIA report that actually has some bullish elements to it, but not enough to overcome oil demand destruction fears. The EIA reported that crude oil inventories increased by only 500 thousand barrels from the previous week. That puts the U.S. supply 3% below the five year average for this time of year. Total motor gasoline inventories decreased by 2.7 million barrels last week and are about 2% above the five year average for this time of year. Finished gasoline and blending components inventories both decreased the previous week. Distillate fuel inventories fell by 2.1 million barrels last week and are about 5% below the five year average for this time of year. Demand-based on total products supplied over the last four-week period averaged 20.3 million barrels per day, down by 2.2% from the same period the previous year. Over the past four weeks, motor gasoline product supplied averaged 8.9 million barrels per day, up by 0.3% from the same period last year. Distillate fuel product supplied averaged 4.0 million barrels per day more than the past four weeks, down by 5.1% from the same period the previous year. Jet fuel product supplied was down 8.3% compared with the same four-week period last year

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Disclaimer: Past results are not necessarily indicative or future results.Investing in futures can involve substantial risk & is not for everyone. Trading foreign exchange also involves a ...

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