Texas and OPEC – No Agreement
Crude prices remain close to their lowest level since 2003 as prospects for a deal between OPEC and Texas to limit production appeared to fade. Prospects of a rare détente between OPEC and the biggest US oil state faded as quickly as they rose as Texas regulators and explorers clashed over a proposal to cap crude output for the first time in almost 50 years. (Reuters)
The coronavirus crisis has pushed the world economy into a deep recession. According to Goldman Sachs research, they now expect global real GDP to contract by about 1% in 2020, which would be weaker than in the year following the global financial crisis of 2008. This is stunning and unwelcomed news to world markets although in the US a coronavirus rescue package seems to be on the horizon.
The world is close to running out of space to store all the fuel that jets are no longer burning. Only about 20% of land-based storage for the product remains — about 50 million barrels — while airlines continue to cut flights. (Bloomberg)
WTI Crude is trading flat this morning at $22.77, a gain of 14 cents.
Fuel is up in down in early trading this morning. Diesel is trading at $1.0046, a loss of 0.2 cents. Gasoline is trading at $0.5393, a loss of 6.6 cents.
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