Down the slippery slope we go
The June contract just hit a low of $18.04, falling by more than 10% on the day, as oil is starting to capitulate once again ahead of the front month expiry/rollover today.
Brent oil has also declined by nearly 15% today in a fall under the $22 level.
Back to WTI, are we going to expect something similar to what we saw yesterday?
My bet would be no. If anything, yesterday was probably a historic event that we may never see in our lifetime again. But that doesn't mean that the June contract won't dance to a similar tune as the May contract did yesterday.
For oil, the same fundamentals still apply. The market is still flushed with supply and there's still no clear path to recovery as the coronavirus eats away at the global economy.
As such, oil is still very much stuck in a hole but chances are it won't fall into the abyss like what we saw yesterday - at least not for now.
Update: That was quick. It is now down 15% to $17.35.
