When oil became waste: a week of turmoil for crude, and more pain to come
In just a few months, the coronavirus pandemic has destroyed so much fuel demand as billions of people curtail travel that it has done what financial crashes, recessions and wars had failed to ever do - leave the United States with so much oil there was nowhere to put it. While the unusual circumstance of negative oil prices may not be repeated, many in the industry say it is a harbinger for more bleak days ahead, and that years of overinvestment will not correct in a period of weeks or even months....
Negative Oil Prices Were a Warning, Not an Anomaly
(Bloomberg Opinion) -- Crude oil's collapse into negative prices on Monday was a clear warning of just how scarce storage space for oil is getting. Prices below zero are the market's way of telling producers to stop pumping, now.Dismissing the historic move in the May contract for West Texas Intermediate crude as “more of a financial thing than an oil situation,” as U.S. President Donald Trump did, misses the point. People left holding that contract when trading ceased on Tuesday would have had to take delivery of the oil at the Cushing storage hub in Oklahoma. But with the world awash in oil, there was nowhere for them to store it. So they had to get rid of that obligation, at almost any price.The situation has arisen because there is still simply too much crude being produced in a world that can’t use it.The output cuts agreed to on April 12, after a four-day standoff between Mexico and the other members of...
A Hedge Fund Manager’s Dream Just Crashed Into the Real World
(Bloomberg) -- Nicolai Tangen, the future chief executive of the world’s biggest sovereign wealth fund, says he wishes he’d been a bit less extravagant.In early 2018, the London-based hedge fund manager was planning what he hoped would be the event of a lifetime. Tangen compiled a list of attendees: the best and the brightest from the worlds of finance, politics and academia. He would call it, “Back to University.”The exclusive get-together, which took place in November in Philadelphia, has now triggered an investigation into how Tangen was chosen to run Norway’s $1 trillion wealth fund.Since a tabloid exposé of his Philadelphia event revealed a jet-set elite hobnobbing in ways most Norwegians could never afford, those who hired Tangen to manage Norway’s savings have been ordered to explain how he’ll handle his personal fortune as CEO, whether it’s an issue that his current business relies on tax havens, and why his name...
The Crypto Daily – Movers and Shakers -26/04/20
It’s a relatively bullish start to the day. A Bitcoin move through to $7,600 levels would support the pack....
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