The energy sector remains under pressure, with further falls in oil as storage issues persist, strategists at ANZ Bank inform.
Key quotes
“The United States Oil Fund LP unexpectedly started selling front month June contracts, causing downward pressure on WTI prices. This comes as concerns remain about the ability of the storage facilities in the US to handle the surplus crude at the moment.”
“The EIA said that the availability of storage at Cushing, the pricing point for WTI futures, will remain an issue in coming weeks. Tanks are 76% full at the moment, the energy group warned.”
“Frustration has emerged among producers as the market remains awash with crude. Equatorial Guinean Oil Minister Gabriel Obian Lima, an OPEC member, said that producers such as the US, Mexico and Norway are sitting there silently watching while we are cutting output.”
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