Excerpt from MarketWatch quoting DataTrek’s Nick Colas:
…. “As DataTrek Research co-founder Nicholas Colas wrote to clients Tuesday, the shape of the entire crude oil futures curve, which shows prices increasing steadily every month, suggests the crash in crude prices Monday was an “outlier” event. That said, he reminded investors that just as monetary and fiscal stimulus can’t cure COVID-19, they also can’t store surplus oil or push prices higher before demand actually returns.
“Until people start driving to work again and flying/driving to recreation spots, oil will remain under pressure and the energy industry will have to face its structural problems of overcapacity and generally fragile balance sheets,” Colas wrote.
In other words, “avoiding the sector is the most prudent action just now,” Colas said”….
Read the full article here on MarketWatch!