CNBC’s Scott Wapner discusses possible warning signs for crude oil futures with Jim Iuorio of TJM Institutional Services and Bill Baruch of Blue Line Futures. Subscribe to CNBC PRO for access to investor and analyst insights on oil and more:
Oil prices tumbled to their lowest level since June on Tuesday amid growing demand concerns as Covid-19 continues to spread.
West Texas Intermediate crude, the U.S. oil benchmark, slipped $3.01, or 7.6%, to settle at $36.76 per barrel. During the session WTI traded as low as $36.13, a price not seen since June 15. International benchmark Brent crude dipped more than 5.3% to settle at $39.78, also its lowest level since June.
“Today’s oil price move is a clear sign that the market now seriously worries about the future of oil demand,” said Paola Rodriguez-Masiu, senior oil markets analyst at Rystad Energy. “The streak of losses is driven by a stalling crude demand outlook for the rest of the year, with rising cases of Covid-19 and the end of the summer driving season in the U.S., as well as Asian refineries putting on [the] breaks,” she added.
Since WTI plunged into negative territory in April for the first time on record, oil prices have staged a big comeback. WTI jumped nearly 90% in May, and has posted monthly gains ever since. The gains were, of course, on the back of record lows, but prices moved higher as international producers scaled back production in an effort to counteract the demand drop-off caused by the pandemic.
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