Crude markets appear to be stabilizing in the low-mid $20/bbl range, but further storm clouds loom on the horizon, in the opinion of strategists at TD Securities.
Key quotes
“While the potential for a New Global OPEC+ would be very constructive long term, the demand-side impact of Covid would nonetheless vastly outweigh a potential curtailment agreement in the short term.”
“Gasoline crack spreads have fallen into negative territory, prompting many refineries to cut refining run rates, which could quickly see inventory levels of crude begin to surge, bringing another wave of selling into this fragile market.”
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