The chronic oversupply of oil and subsequent price plummet will have a "lasting impact" on the commodity and spells "trouble ahead" for investors in the asset class, according to some investment professionals.
Others, however, believe yesterday's price action was a "peculiarity of futures trading" and will not be "the new normal going forward", therefore opening up a "vast" opportunity set for investors. Yesterday evening (20 April), US West Texas Intermediate (WTI) oil fell to minus $37.68 as producers began paying buyers for barrels due to storage concerns, as the pandemic-induced lockdown continues to weigh on demand for the commodity. Market Movers Blog: FTSE down 1.7% in first 30 minutes of trading following oil price crash It staged a small recovery this morning to $1.40 per barrel...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
