20.04.2020 WTI Daily Analysis

20.04.2020 WTI Daily Analysis WTI is trading at $16.85 (-17.52%). On Monday, US Crude oil price made history and went as low as -$40 as the May contract is expiring at the end of today.  Gregory Perdon, Co-Chief Investment Officer at Arbuthnot Latham said,  " Yesterday was a wake-up call and investors would be remiss to ignore that low oil means lower inflation, higher defaults, lower growth and more political instability as less petrodollars circulate in the system." Investors took this as a sign of just how much the global economy has been affected by the pandemic. WTI crude oil June contract has been going down too  (-17.52%) and this is due to all the travel restrictions and lockdown measures around the world which has reduced global fuel use and put a damper on the demand. Right now, no one wants to store oil, and so it's become harder to find storage space.  Michael McCarthy, chief market strategist, CMC Markets said,  "Today it's pretty clear that a major issue in the market is a glut in the US and lack of storage capacity." Many analysts have said that if there are no output cuts then we should continue to see the price of oil go down especially if many countries are still under lockdown ( very low demand). The American Petroleum Institute is set to release data today and the US crude oil inventories will be released tomorrow and will give investors a clearer idea of what is happening.