Oil Posts Worst Quarter Ever While Physical Market Craters
- API shows U.S. crude stocks rose 10.5m barrels last week
- WTI edges up Tuesday but futures down more than 66% in quarter
Photographer: Andrey Rudakov/Bloomberg
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Oil posted the worst quarter on record after the coronavirus crushed demand and raised fears about overflowing storage tanks amid a price war that has flooded the market with extra supply.
Futures in New York edged higher on Tuesday but still ended the quarter down more than 66%. While Brent and West Texas Intermediate futures held above $20 a barrel, the underlying, physical market flashed signs of distress. The gap between paper market trades and real barrels has widened to multi-decade highs in some cases, suggesting financial flows are supporting the futures market.