Negative Oil

Hamesh Sharma of Pathfinder with an overview of the implications for energy stocks and airlines such as Air New Zealand. What does the future hold for oil?

Late in April, for the first time ever, West Texas crude oil futures plunged to a negative value (a day before they expired) meaning that people were being paid to accept barrels of oil.

This may seem absurd, but demand destruction for oil (as the global economy is in lockdown) and the inability to store excess oil supply is wreaking havoc in the oil market.

This demand shock comes after the Saudi-Russian energy price war which began earlier this year, meaning there are issues on both the supply and demand side of the equation for oil.

Read more of Hamesh's article here


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GENERAL INFORMATION ONLY

This information is general information only and does not take account of your individual investment objectives or financial situation.
Pathfinder Asset Management encourages all investors to seek independent financial advice prior to making investment decisions.