WTI Tumbles Back Below $60 Amid Over-Supply Fears

Amid concerns about European demand (as increasingly restrictive lockdowns are reintroduced) and the beginnings of anxiety about US demand (as case counts rise), over-supply fears are rising again as
consultant Energy Aspects notes in a report that the last commercially available 150m-200m bbl of storage built up last year (remember all those tankers at anchor floating around the world, buoyed by low prices and strong carry)  is now being released and hurting physical crude markets.

WTI is back below $60…

WTI also tumbled to its 50DMA…

This anxiety is seen also in the Brent curve, now in Contango…

Contango is a bearish structure that generally signals oversupply, and it makes it loss-making to roll from one month to the next, and as a result it can often spark price selloffs when the market flips.