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By Randeep SOMEL, Director of Global Equities in the MG Equity team
In the history of the oil market, the 20th April 2020 will be a notable day. While we have become familiar with a volatile oil price, we have now seen the sharpest single day decline that has led to oil contracts trading at negative values for the first time.
The consistent increase in the oil supply since the advent of hydraulic fracturing ('fracking') has meant supply has been running ahead of demand for some time. The big producers, notably OPEC (and latterly OPEC+) have had many attempts to curtail production but their attempts have not been successful.
The sheer drop in demand due to economic impact of COVID-19 is unprecedented. Never in the...
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