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Global crude inventories to max out in 2 months amid coronavirus

Plunging demand leads to a strain on storage facilities

The spread of the coronavirus lead to the collapse in the oil market.   © Reuters

TOKYO/DUBAI/NEW YORK -- Global inventories of crude oil are rapidly increasing and may peak in June. But despite demand for gasoline and other petroleum products plunging due to the new coronavirus, oil producing countries are reluctant to cut production.

The possibility of oil storage maxing out in two months cannot be ignored as a rapid rebound in demand is unlikely now that countries are still figuring out how to reopen stalled economies.

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