The COVID-19 shutdowns and the associated demand declines continue to send inventories surging, strategists at TD Securities apprise.
Key quotes
“With North American demand plunging at a much higher rate than supply declines and global oil production remaining at high levels, inventories will continue to build well into Q2.”
“It is likely that some delivery points will be filled to capacity, which implies that prompt prices may still move into negative territory again.”
“Once OPEC+ and North American cuts get phase in, and demand starts to return, WTI prices should trend into the $30s as Q3 unfolds.”
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