London, US:
Due to the Global demand recovery with weak stock soured market oil steadied after its biggest one day loss in more than two month. For the first time since June 15 in London there was a little change after dropping 5.3% on Tuesday to settle below $40 barrel.
One reason is also the relation between US-China which is no good and retreat in global stocks is partially driven by concerns a Covid-19 vaccine which may get delayed.
Brent crude’s has broken to $40 a barrel in the two months of the global benchmark which holds between $42 and $45. In last three sessions the benchmark S&P 500 Index has fallen 7%. Bank of America Merrill Lynch said “It will take three years for oil demand to full recover the outbreak even if there’s a vaccine.
According to The Tank Tiger which is an independent brokerage and consulting clearinghouse, oil traders have begun seeking out available US onshore storage. The return of storage plays that only work when the market is glutted is bad news for producers withholding supply in a bid to increase prices.