Timely petroleum, renewable fuels, railcar, and storage intelligence from the PFL team.
Oil prices fell on Wednesday despite expectations that major
producers have moved closer to an agreement to enact deeper
output cuts.
Oil prices moved higher on Tuesday, but quickly came off session highs reached after the U.S. Federal Reserve cut interest rates in an emergency move designed to shield the world’s largest economy from the impact of the coronavirus.
As the coronavirus spreads across the globe analysts shown a
growing concern over if the production cuts to oil production would
offset the slide in oil prices.
Folks, it was a really bad week last week for commodities and equities – a historic sell off
Oil prices had their worst week since the financial crisis as coronavirus concerns ravaged commodity and other financial markets.
Despite a smaller than anticipated build in crude inventories and a drop in gasoline inventories, it is really all about the virus here. US commercial crude inventories grew by ~500K bbls, compared to a forecasted build of more than 2 million/bbls.
Transport Canada & Transport Minister Marc Garneau’s office approached the CN and CP to help negotiate the rail sharing deal to alleviate shortages of essential goods.
Oil prices continued to fall today, dropping down more than 5% at session lows, and falling again into bear market territory.
Oil prices will remain vulnerable here as most energy traders were not pricing in the coronavirus potentially becoming a pandemic.
Coronavirus updates, Canadian Protests, Railcar volumes and more in this week’s Railcar Market Update