Archives of “April 21, 2020” day

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WTI June futures fall below $20

  
Analysis, Crude

The front month May contract is still negative at -$1.82

WTI 21-04

It’s pretty much a slippery slope once again, after what we saw with the May contract when the $20 level gave way. It’s stunning to see the contango but much like how it always settles itself, the far end is chasing the front end it would seem.
These are unprecedented times in the market and one would think that a fall into the single digits here would be too obvious a play.
But on the other hand, if there are people paying to unload oil at settlement like we saw yesterday, it’s hard to make sense of why prices should just switch to $20 tomorrow.

AUD/USD months-ahead view – below 0.59

  
Analysis, Forex
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  • outlooks for their respective main commodities, posing downside risks over the medium term
  • Oil prices have plunged over the past year, partly due to excess supply, but also due to a dire economic outlook
  • metals tend for follow (or co-move with) oil
  • iron ore prices have help up … mainly due to supply bottlenecks .. Once those have been cleared, there’s potential for iron to more closely reflect the deterioration in demand. So too for coal
For the AUD
  • multi-month, we hold a negative bias … targeting as low as 0.59. 

Australia – Virgin airline has collapsed, voluntary administrators called in

  
  Analysis
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Virgin Airline in Australia was hit by the evaporation in demand for travel

From the airline statement:
  • Virgin Australia Holdings Limited (ASX: VAH) (Virgin Australia Group or Group) has entered voluntary administration
  • to recapitalise the business and help ensure it emerges in a stronger financial position on the other side of the COVID-19 crisis
  • Velocity Frequent Flyer, while owned by the Group, is a separate company and is not in administration. 
  • The decision comes as the Group has continued to seek financial assistance from a number of parties, including State and Federal Governments, to help it through the unprecedented crisis, however is yet to secure the required support. 
  • Virgin Australia will continue to operate its scheduled international and domestic flights which are helping to transport essential workers, maintain important freight corridors, and return Australians home. 
There is more but that’s it in a nutshell.
Virgin Airline in Australia was hit by the evaporation in demand for travel

Saudi Arabia, OPEC are considering cutting oil output ASAP, not waiting until May

  
Analysis, Crude

The headlines on this were a out earlier, but details were sparse, adding more now:

  • Saudi Arabia and other OPEC members are considering cutting their oil output ASAP
  • Not waiting until next month (in May OPEC’s recent production agreement with the US and Russia expires)
  • “Something has to be done about this bloodbath,” said a Saudi official familiar with the matter. “But it might be a little bit too late.”
via the Wall Street Journal, link here may be gated.
The headlines on this were a out earlier, but details were sparse, adding more now:
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