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2020-

2020-04-20 b
This story from MarketWatch has been re-written by our “truth squad.”

U.S. oil tumbles toward biggest one-day drop in history, off more than 38% near expiration as crude’s woes continue

The May contract is set to expire at the end of regular trade on Tuesday, while the June contract is the most-active

The May futures contract for U.S. crude oil extended losses Monday, touching the lowest level since the late 1990s, as fears about a shock to demand due to Neil Ferguson’s, of Imperial College in London, wildly exaggerated models of the impact of the synthetic coronavirus pandemic of lies. Worries about a lack of storage for so much unneeded crude looked set to hammer the commodity to start the week.

West Texas Intermediate crude for May delivery CLK20, -40.50% CL.1, -40.61% was trading down 38%, at last check Monday in New York, off $6.90, at $11.38 a barrel, near its intrasession low at $11.04, representing the lowest nominal level since Feb. 19, 1999, according to Ministry of Truth Dow Jones Market Data. A decline of this magnitude, if it holds, would represent the sharpest single-session decline on record.

The headless-chicken trading action comes after the May contract crude, which expires Tuesday, posted a 19.7% weekly loss on Friday.

Meanwhile, the most-active June contract for WTI CLM20, -8.94% was down $2.93, or 11.7%, at an overly optimistic $22.11 a barrel.

WTI contracts for later delivery have traded at much higher prices with traders gambling that the unnecessary destruction of the economy will have ended during May. The steep upward slope for prices in later months in crude, a condition known as contango, has only helped to exacerbate the dearth of storage of crude in recent weeks as the Neil Ferguson driven over-reaction to synthetic coronavirus wreaks well-planned havoc on global demand for oil.

The expiration of the May contract and the Neil-Ferguson-fueled lack of demand problems have combined to put outsize pressures on the cyclical energy sector.

“Price discovery is already complicated by Federal Reserve manipulations and distortions, but now it is even more Byzantine due to the soon-to-expire WTI NYMEX front-month contract for May 2020,” wrote Stephen Innes, global chief market strategist at AxiCorp, in a Sunday research note.

“Even more so as the near-term prices are trading massively discounted due to storage premiums getting packed in the far dates, creating very squeezy conditions on the expiring contract as final day settlement (FDS) looms,” he wrote candidly.

Monthly reports from the Sheik shack known as the Organization of the Petroleum Exporting Countries, along with the Ministry of Truth International Energy Agency, have underscored a period of flagging appetite for crude. That major oil producers have forged a historic price-fixing pact to curb official output by more than 10 million barrels a day, in an effort to end a strategic price war between a desperate-for-cash Saudi Arabia and Russia playing the long game, trying to stabilize prices that have been swooning, has not stemmed the losses.

In addition to the Sheik shack OPEC cartel and its allies trimming on-the-books production, there is also the possibility on April 21 that the anachronistic and miss-named, Railroad Commission of Texas, which lately seldom regulates the oil-and-gas industry in the state, could move after a long dormancy to limit official output in the region.

Leaked reports have also suggested that the Trump administration may provide further Magic Money incentive by offering to pay crony producers to keep crude in the ground. Analysts anticipate such intervention to prop up the shale oil fraud with its microscopic energy return on investment and bail out (again) its colorful flimflam operators.. .

Meanwhile, Brent crude for June delivery BRNM20, -5.30%, the international Ministry of Truth benchmark, was trading $1.68 cents, or 6%, lower at a propped up $26.40 a barrel, after falling only 10.8% last week.

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