Asset Management

Temporary ‘quirk’ in oil trading will not last, investment analysts say

Pressure will remain on oil prices over the next couple months, meaning a repeat of the dip is probable

Asset managers have told clients the US oil crash is a temporary hiccup that will pass once demand returns to the market. 

The crash in the price of US oil, which fell to a historic low of minus $37 on April 20, reflects the uncertainty about what buyers would do with barrels of oil in the near term, as huge stockpiles have now formed amid restrictions on movements in a bid to stop the spread of Covid-19. 

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