A fresh spill
Today’s news headlines:
‘US oil prices sink as coronavirus fuels storage fears’ – Fears are again mounting that oil prices could turn negative over fears of a shortage of storage capacity. The June WTI contract fell to just $11.33 per barrel in Asia trading hours, following the same path as the May contract which fell to negative $40 per barrel, the first time in history that an oil contract had fallen below zero. Demand for oil continues to be affected by the coronavirus pandemic meaning that storage capacity will be a key driver of prices in the near-term. (Financial Times)
‘Johnson urges discipline while UK plans gradual lockdown exit’ – On his first day back in office after contracting coronavirus, Boris Johnson urged Britons to stick with the lockdown that has helped slow the rate of deaths from the global pandemic. Meanwhile, scientists are considering the different options available for easing restrictions after the daily death count fell to the lowest number since March 28th. Chief Medical Officer, Chris Whitty, warned that the coming months are fraught with uncertainty whilst the Prime Minister said that lifting restrictions too early would risk a second spike in infections. (Bloomberg)
Today's events, rates, and data
Oil’s overnight slide has affected risk appetite going into today’s session, even as we continue to see more positive signs of progress in the fight against the pandemic. The US Dollar was a small percentage higher, whilst US treasury yields fell. Shares in New Zealand rose after the nation emerged from a strict nationwide lockdown.
Spanish Unemployment Rate 14.4% vs 13.8% last month
US CB Consumer Confidence 3pm