Speculators unwound WTI crude long positions, while also taking profits on shorts as the double whammy demand and supply shock continues to pressure the market, strategists at TD Securities report.
Key quotes
“On the demand front, the latest DOE stats showed signs of dismal petroleum product demand, as highlighted by negative gasoline cracks, which are prompting a number of refinery run cuts across the global.”
“There remains little evidence that either Saudi or Russia are willing to discuss ending the price war any time soon.”
“The fundamental situation in the energy market continues to deteriorate, and prices trending into the teens is not off the table as inventories swell in the coming weeks and months.”
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