Staying long is a brave move.
U.S. commercial crude oil inventories (excluding those in the Strategic
Petroleum Reserve) increased by 13.8 million barrels from the previous
week. At 469.2 million barrels, U.S. crude oil inventories are near the
five year average for this time of year. Total motor gasoline inventories
increased by 7.5 million barrels last week and are about 4% above the
five year average for this time of year. Finished gasoline and blending
components inventories both increased last week. Distillate fuel
inventories decreased by 2.2 million barrels last week and are about 13%
below the five year average for this time of year. Propane/propylene
inventories decreased by 0.3 million barrels last week and are about
29% above the 5 year average for this time of year. Total commercial
petroleum inventories increased last week by 21.0 million barrels last
week
The ongoing reduction of air travel, trucking and construction in the US will further build inventories in the next 3 weeks.
This article is three weeks old and before the COVID blow up in the US and Europe. China now has not customers, well except mask and ventilators. China is also the refiner for much of SE Asia. Indonesia is among several countries believed to be under reporting COVID cases as seen in their high mortality rate. Indonesia further announced last week a significant amount of spending for medical and social stability. In short SARS put Singapore, Hong Kong and several SE Asian countries in rescission and they nor the world shut down their economies. China's refined products to SE Asia will collapse over the next 4 weeks.
I am neither short or long oil. The sensitivity and manipulation of the market is creating excessive instability at this time.
Cheers