Month: April 2020

After the chaos of last week’s collapse of crude oil prices, markets have been adjusting upwards – at least until early Monday when values started to slide again.

This phenomenal weakness of the market has been caused by two basic elements, the first being the fall-off in demand due to the coronavirus pandemic, and the secondly being the continued build-up in crude stocks and inventories – for which few storage facilities remain. The collision of those circumstances drove West Texas Intermediate prices into negative territory for the first time ever April 20, when they sank to an astonishing minus $40.32 per barrel. read more

EMEA Base Oil Price Report

The hot news this week, apart from the continuing saga of coronavirus, is that West Texas Intermediate crude prices have collapsed. The U.S. benchmark crude is trading at its lowest level this century, while base oil demand continues to be virtually non-existent.

West Texas Intermediate crude is also in a state of “super-contango” because the gap between the price paid for oil today and contracts for delivery in future months is at its highest level in more than a decade. This should encourage traders to store oil and hold out for higher prices, but today’s barrels are being sold at distressed prices as they struggle to find buyers amid fears that there might not be available storage capacity to house supplies. read more

EMEA Base Oil Price Report

Economies remain paralyzed by the spread of Covid-19 with many employees and their bosses working from home wherever possible. This does not make for a happy scene for the base oi markets where many players are reeling from the potential threats to business, the full effects of which are yet to be felt.

The coronavirus pandemic is widespread, and while some parts of the world may be over the worst of the problem, others are just beginning to realize the implications. Europe, the Middle East and Africa are affected, with countries like Italy and Spain badly hit by the pandemic. The United Kingdom and Germany seem to be managing the situation perhaps better than others, but the effects are global, with everyone being subject to restrictions on movement of people and materials. read more