It does appear that when the June expiry rolls around, a similar selloff – and maybe negative prices, would happen again, according to Howie Lee from OCBC Bank.
Key quotes
“The inability to store means it matters little that a refiner had earlier bought crude oil at the low $20s if they cannot find a space to store the oil, their purchase is as good as moot.”
“The lack of storage/expensive storage is unlikely to be resolved unless demand either improves, or the US cuts its output.”
“As long as demand remains weak and buyers cannot find storage space, prices will remain heavily suppressed.”
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