The Real Oil Market Shows $20-a-Barrel Price Collapse Is Excessive
- Physical market is ‘pretty tight,’ Shell CEO Wael Sawan says
- China is getting a flood of crude while local travel rebounds
The silhouette of a pumpjack near Orla, Texas.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
Crude markets have suffered a disastrous few weeks, dragged down by alarm over the wider economy. But real oil demand still looks strong enough to foster a rebound in prices.
International benchmark Brent almost dropped to $70 a barrel on Thursday after losing 17% since mid-April on fears of a US recession and signs of a disappointing recovery in China. Crude in New York plunged at the open to take the decline over the past three weeks to $20, before recovering.