* U.S. crude oil prices hit 18-year lows
* Trump unveils plans to end coronavirus shutdown
* U.S. drillers slash most oil rigs since Feb 2015 -Baker
Hughes
* Interactive graphic on prices: https://reut.rs/39ieums
(Adds weekly milestones, CFTC data)
By Devika Krishna Kumar
NEW YORK, April 17 (Reuters) - Oil prices were mixed on
Friday, with weak Chinese economic figures and rapidly filling
U.S. crude storage offsetting bullishness built on U.S.
President Donald Trump's outlines for the U.S. economy to emerge
from the coronavirus shutdown.
U.S. crude futures hit a more than 18-year-low, extending
their losses in comparison to global benchmark Brent, in part
due to the coming expiration of the current May contract.
However, later-dated futures contracts were also down as the
country's storage rapidly fills, and producers and traders
expect output cuts in coming months.
Oil prices have remained weak even after the Organization of
the Petroleum Exporting Countries and other producers last
weekend announced a deal to cut output by nearly 10 million
barrels per day (bpd) in response to weak demand.
Brent futures LCOc1 rose 26 cents, or 0.9%, to settle at
$28.08 a barrel while West Texas Intermediate crude contract
(WTI) for June CLc2 , which became the day's more active
contract, ended the session down 50 cents, or 2%, at $25.03.
The less active prompt WTI for May delivery CLc1 tumbled
by $1.60, or 8.1%, to $18.27, ahead of its April 21 expiration
as investors rapidly switched out of that contract into June
futures. The contract slumped to a low of $17.31 a barrel during
the session, the lowest since November 2001.
May WTI futures slumped nearly 20% on the week, based on
last Thursday's settle, while Brent dropped nearly 11%. Markets
were closed last Friday for Good Friday.
China's economy shrank 6.8% year-on-year in the three months
to March 31, the first such decline since quarterly records
began in 1992. The nation's daily refining output fell to a
15-month low, though there are some signs of recovery as the
country begins to ease coronavirus containment measures.
Prices found some support as the U.S. plans to ease lockdown
measures after Trump laid out new guidelines for states to
emerge from a coronavirus shutdown in a three-stage approach,
but the early boost to Brent prices was largely short-lived.
Lending further support, U.S. drillers cut 66 oil rigs this
week, the biggest weekly cut since 2015 and bringing the total
down to 438, the lowest since October 2016, energy services firm
Baker Hughes Co BRK.N said. RIG/U
Still, fuel demand worldwide is down by roughly 30%. That
prompted major producers including Russia, a grouping known as
OPEC+, to agree to cut output by 10 million bpd last weekend.
"If more of the global economy enacts plans to reopen and
restores some sense of normality, that could help oil prices
find a firmer floor in May, aided by the OPEC+ supply cuts
kicking in," said FXTM analyst Han Tan.
U.S. GLUT TO PERSIST
Investors in futures have been unwinding long, or bullish
positions in May as stockpiles in the United States have surged
by record amounts and storage limits will be tested this summer.
U.S. storage at the Cushing, Oklahoma delivery hub for WTI is
now 69% full, up from 49% four weeks ago, according to U.S.
Energy Department figures.
This has made prices for oil for delivery in nearby months
much cheaper than those for future delivery - sending the market
deeper into a structure known as contango, which reflects
expectations for oversupply.
"This morning's major disconnect between May WTI and the
rest of the energy complex could become even more pronounced
during the next three sessions before the May contract goes off
the board," Jim Ritterbusch, president of Ritterbusch and
Associates, said.
Inflows into the U.S. oil fund USO has surged as investors
seek exposure to cheap oil, dealers said. The fund said in a
filing late on Thursday it would adjust its positioning by
diversifying from 100% investments in front-month WTI contract
to 80% front month and 20% in the second month.
The change is already prompting some traders to sell June
futures and buy July's contract, dealers said, sending the
spread between the two contracts CLM0-N0 to as much as $4.78,
the widest on record.
Money managers raised their combined futures and options net
long position in New York and London by 24,323 contracts to
199,543 in the week to April 14, the U.S. Commodity Futures
Trading Commission (CFTC) said. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
world population under lockdown IMAGE https://reut.rs/2RDU6Gu
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