Driven by WTI prices, international oil prices have fallen sharply, and the reason why WTI prices are so weak is mainly due to the sharp pressure on US crude oil inventory, especially the crude oil reserve capacity in Cushing area is close to the bottleneck, which leads to the sharp rise of spot delivery pressure. WTI 2005 contract has a deep discount situation. When the discount is the largest, the difference between WTI 2005 contract and 2006 contract is as much as $11! As of Friday's close, SC crude oil price fell 12.52%, Brent oil price fell 11.8% and WTI oil price fell 21.86%.
In addition to the U.S. crude oil inventory, the rest of the world's crude oil inventory also faces great pressure. In the process of demand precipitous decline, opec3 crude oil production increased again in the month, which to some extent increased the excess of the spot market. After the meeting, the official price of crude oil from the Middle East to Asia and Europe was sharply reduced.
At present, demand has been the most important factor restricting the upward trend of crude oil price. Novel coronavirus pneumonia has long time struggled, and the epidemic in Europe and America has made it difficult for us to know when the inflection point will emerge. The total number of infected people is expanding. The new confirmed case of pneumonia in the United States has exceeded 700 thousand, far beyond the market expectations. On the demand side, no matter what measures governments take, the effect of demand boosting has not been well reflected. The short-term market still needs to rely on the power of the supply side to stabilize the market price. Of course, the demand side is likely to change in the near future. For example, on April 17, the number of newly confirmed cases dropped sharply, from more than 100000 on the previous day to the lowest increase of more than 56000 cases in half a month, which seems to mean that although the inflection point of the epidemic is uncertain, it is likely to be very close.