Too much oil, too little diesel

Western Texas Intermediate crude oil has been hovering over the mid-teen level after settling at negative 37 dollars per barrel the day before the May expiry. Covid-19 has erased demand for crude, and the excess supply of crude has filled up all storages, causing traders and producers to pay money to offload their crude.

Since then, some wells in the US have begun shut-ins. Refiners have prolonged their spring maintenance most likely for the IMO 2020 standard but also to wind down their production given the collapse in the refined product price and demand. Indeed, with air…