Crude oil futures' prices slumped as US crude stockpiles climb amid sluggish demand

by   |  VIEW 377
Crude oil futures' prices slumped as US crude stockpiles climb amid sluggish demand

On Wednesday, the 1st of April 2020, both US and UK crude futures’ prices pummelled following a record surge of US crude inventories last week, while the petroleum demands had faced off its steepest weekly plunge on record.

In point of fact, crude oil futures’ prices had been hovering near their multi-year low over the recent past following a break-off of the three-year-long OPEC+ pact, that eventually had given rise to a “lose-lose” crude oil price war over market share between Saudi and Russia, while the United States appeared to have joined the race as well as its crude inventories rose by 13.8 million barrels of oils per day last week, remarking its biggest intra-week leapfrog since early 2016s.

Meanwhile, as analysts were expecting more similar data over the coming days, while gasoline demand would unlikely to regain momentum in an intermediate-term outlook and a raft of US refineries had been stalling or curbing out productions to insulate them amid a horserace of production hikes, referring to a bundle of baleful aspects which would likely to drag down the crude oil futures’ prices further, President of Ritterbusch and Associates, John Ritterbusch wrote in a client note on Wednesday (April 1st), “The likelihood of distressed cargoes, increased freight rates, force majeures, strains on storage capacity, VLCC availability will be combining in placing additional downside pressures on petroleum prices.

” Citing statistics, on Wednesday’s (April 1st) market closure, the US West Texas Intermediate crude had rounded off the day 17 cents lower to $20.31 per barrel after hitting an intra-session low of $19.90 per barrel, while bearing the heaviest brunt on Wednesday’s (April 1st) crude oil market, the Brent crude futures’ prices due to be expired on June fell by 6.1 per cent to $24.74 per barrel.