Crude oil simply had its greatest day ever, solely a day after its third-worst drop in historical past.
West Texas Intermediate jumped greater than 23% to $25.22 a barrel on Thursday. Nevertheless, it stays on monitor for its worst month-to-month decline on file as a provide glut and demand considerations hold oil buyers on edge.
Three market specialists weigh in.
Jeff Currie, world head of commodities analysis at Goldman Sachs, says promoting throughout commodities has been indiscriminate.
“I feel we’ve got extra draw back. After we take a look at the demand losses, they’re unprecedented — not solely in oil however your complete commodity advanced, and notably these commodities which might be extra leveraged to this complete concept of self-isolation. Not solely is oil down as a result of we’re not shifting round, but additionally issues like beef which might be leveraged to restaurant demand, they’re down. … There’s one other dynamic at play right here that is actually grew to become extra vital in commodities within the final, I might say, two to a few days, that are liquidity…