Takeaway: Negative WTI May Contract Closes Tuesday But Focus Shifts to Potential June Repeat As Storage Closes in on FULL Mark


 FLASH CALL TODAY @ 2PM | Oil Market's CAT-5 Storm + What's Next for June - IMG 2737


With Hedgye’s Joe McMonigle & Former EIA Head Guy Caruso

Tuesday, April 21, 2020

2:00 PM EDT

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Confirmation Number: 13702694

Join Hedgeye’s Joe McMonigle and Guy Caruso, former head of the U.S. Energy Information Administration, to discuss the Coronavirus CAT-5 storm that hit oil markets Monday sending WTI's May contract into negative pricing.  The conference call is today, April 21 at 2:00 PM Eastern Time.

Caruso and McMonigle will discuss Cushing storage concerns and massive demand declines and whether we can expect a similar situation in June. 

Negative pricing on the May contract is dragging down the June WTI contract and also Brent into today's trading. The May contract is under water due to refiners cutting runs and Cushing storage quickly approaching the full mark.

June’s contract will be impacted by the lack of storage but also sensitive to potential moves on opening up the economy and generating some demand signals.

White House National Economic Council Advisor Larry Kudlow on Monday said May will be a difficult month for the US economy. Oil markets just gave a crystal ball analysis of just how rough it will be. Energy is such a key driver in terms of jobs and GDP growth so its certainly a sign the broader economic picture will get worse in May.