Previous comments said that a series of news hit the market before the expiration of the contract in May, including the International Energy Agencys forecast last week that global oil demand will decrease by 9.3 million barrels / day this year compared with last year, and the demand in April will decrease by 29 million barrels / day year-on-year, to the lowest level since 1995. The US energy information administration announced last week that US crude oil inventories rose by more than 19 million barrels on a month on month basis last week, a record two-week increase and a 12 week increase. These figures mean that traders will soon not have enough space to store crude oil.
For dealers, if the may long contract is not balanced, it means that they will receive spot oil and only have a few days to tell the seller how to receive the goods. At this time, it is impossible to find oil storage space in Cushing. May contracts have become a hot potato for pure virtual traders.
According to the securities times, there are many problems behind the recent record low performance of crude oil, and the collapse of demand caused by the new crown epidemic is undoubtedly the key reason. However, some experts pointed out that the collapse of USOC was also related to its contract design, and there has been a rare situation of too much air force in the US market. Under the influence of the new crown epidemic, the international crude oil market has encountered unprecedented impact. When the market recovers depends on when demand recovers. There is still a lot of uncertainty.
In the early morning of the 21st Beijing time, gold futures closed slightly higher on Monday, returning to above $1700 an ounce. The weakening of the dollars early gains and crude oil prices, as well as signs of weakening risk appetite, provided a driving force for precious metals to move higher.
Analysts said that the current sharp drop in oil prices is good for gold prices. Globally, the decline in oil prices is closely related to the collapse of bond yields and interest rates. This has increased the value of interest free gold, and also shows that central banks must continue to stimulate the economy and inject a lot of money into the financial system, which is also good news for gold.
Daily K-line chart of spot gold
Source: editor in charge of daily economic news: Yang bin_nf4368