Oil Is Crashing After China’s “Great Uncertainty” Statement
Thu, 05/21/2020 – 23:46
Although Beijing announced some new stimulus measures, it appears markets prefer to focus on the “great uncertainty” that Chinese officials see ahead (due to the coronavirus) leading to a decision to not release a target for economic growth has thrown the “v-shaped” recovery narrative out the window (for now).
“The nascent demand recovery is still vulnerable, and the drop in prices today is an injection of reality,” said Victor Shum, vice president of energy consulting at IHS Markit in Singapore. “China not giving a GDP target means they are not quite certain about the recovery yet.”
WTI has crashed over 9%, with the July contract trading back down at a $30 handle…
And US futures are notably weaker with Nasdaq leading the drop…