Spot Cargo Markets-Second Wave

摘要

Oil prices crashed again after market hopes of a sharp V-shaped recovery from Covid-19 were dashed by gloomy economic predictions from the US Federal Reserve, and mounting fears of another coronavirus wave. High invento-ries of products and crude pose a major stumbling block for prices. Even in the event of a demand recovery, huge stock-piles of finished fuel, including jet fuel, will need to be worked through before refiners can kick-start runs and begin eating into the huge overhang of crude inventories that have also built up during lockdown. Oil price losses were part of a deluge of red ink across broader markets, with the S&P 500 and other indexes also seeing steep drops late in the week. International benchmark Brent lost more than $3 per barrel in Thursday trade alone to end the week down $1.44/bbl at $38.55/bbl. US domestic price-pin West Texas Intermediate (WTI) finished the week down $1.07/bbl at $36.34/bbl. The US Federal Reserve delivered another dose of sobering projec-tions, saying domestic GDP would fall 6.5% and unemploy-ment would average 9.3% in 2020-with full recovery from coronavirus two years away.