Ugly day in crude
Oil is extremely vulnerable to coronavirus because of nature of the crude market and the difficulty of storing extra oil.
Estimates are all over the place but the drop in Chinese demand has taken off around 2 million barrels per day of oil demand. If there's no demand for that oil, what's the clearing price?
You need to either cut production or oil will continue to decline because demand is so inelastic and storage capacity is finite.
