Oil marks anniversary of crash below zero with rise toward $64

Oil rose toward $64 a barrel, a year to the day after futures for the U.S. benchmark collapsed below zero, with the world’s most important commodity extending its rally on bets for better demand.

West Texas Intermediate advanced 0.5%, after production in Libya fell below 1 million barrels a day amid a budget dispute. The forward curve suggests growing confidence -- particularly as U.S. demand recovers -- with some market gauges surging in recent days. Several so-called timespreads are in their strongest backwardation in a month, indicating tight supply.

Vitol Group, the world’s biggest independent oil trader, expects demand to come roaring back, echoing optimistic views from OPEC and the International Energy Agency. Vaccine rollouts are bringing confidence back amid stronger economic data emerging from China and the U.S. Still, the virus is rampant in countries such as India, where a refiner is curbing processing because of lower demand.

“Follow-through buying is pushing prices further up but the immediate upside potential could be limited by the relentless march higher in infection rates,” said Tamas Varga, an analyst at PVM Oil Associates.

A year ago Tuesday, the global oil market faced an unprecedented crisis, with WTI closing at -$37.63 a barrel. Prices went negative after lockdowns savaged demand and key producers Saudi Arabia and Russia flooded the market in a price war. A restoration of OPEC+ unity marked by deep supply cuts, as well as the vaccines, have helped prices to climb back.

“The market’s recovery through the past year, though still clouded by uncertainty, makes a repeat of the April 2020 price crash highly unlikely,” said Vandana Hari, founder of Vanda Insights in Singapore. “Some of the circumstances were unique to last year and the initial weeks of the pandemic, such as the confluence of the unanticipated shock of global lockdowns and demand destruction and OPEC+ opening the spigots.”

The defense attorney said the failure of the prosecution to acknowledge that medical problems or drugs played a role “defies medical science and it defies common sense and reason.”

During the prosecution’s argument, Schleicher replayed portions of the bystander video and other footage as he dismissed certain defense theories about Floyd’s death as “nonsense.” He said Chauvin killed Floyd by constricting his breathing.

Schleicher rejected the drug overdose argument, as well as the contention that police were distracted by hostile onlookers, that Floyd had “superhuman” strength from a state of agitation known as excited delirium, and that he suffered possible carbon monoxide poisoning from auto exhaust.

The prosecutor sarcastically referred to the idea that it was heart disease that killed Floyd as an “amazing coincidence.”

“Is that common sense or is that nonsense?” Schleicher asked the jury.

Blackwell, his fellow prosecutor, likewise rejected the defense theory that Floyd died because of an enlarged heart: “The truth of the matter is that the reason George Floyd is dead is because Mr. Chauvin’s heart was too small.”

Earlier, Schleicher described how Chauvin ignored Floyd’s cries and continued to kneel on him well after he stopped breathing and had no pulse. Chauvin was “on top of him for 9 minutes and 29 seconds and he had to know,” Schleicher said. “He had to know.”

He said Chauvin heard Floyd, “but he just didn’t listen.”

The prosecutor said Floyd was “not a threat to anyone” and was not trying to escape when he struggled with officers but instead was terrified of being put into the tiny backseat of the squad car.

He said a reasonable officer with Chauvin’s training and experience — he was a 19-year Minneapolis police veteran — should have sized up the situation accurately.

Chauvin showed little expression as he watched himself and the other officers pinning Floyd to the ground on bodycam video played by his attorney. He cocked his head to the side and occasionally leaned forward to write on a notepad.

An unidentified woman occupied the single seat set aside in the pandemic-spaced courtroom for a Chauvin supporter.

Floyd’s brother Philonise represented the family in court in the morning, followed later by a nephew, Brandon Williams.

Schleicher also noted that Chauvin was required to use his training to provide medical care to Floyd but ignored bystanders, rebuffed help from an off-duty paramedic and rejected a suggestion from another officer to roll Floyd onto his side.

“He could have listened to the bystanders. He could have listened to fellow officers. He could have listened to his own training,” Schleicher said. “He knew better. He just didn’t do better.”

After closing arguments were done, Judge Peter Cahill rejected a defense request for a mistrial based in part on comments from California Rep. Maxine Waters, who said “we’ve got to get more confrontational” if Chauvin isn’t convicted of murder.

The judge told Chauvin’s attorney: “Congresswoman Waters may have given you something on appeal that may result in this whole trial being overturned.” He called her comments “abhorrent” and “disrespectful to the rule of law and to the judicial branch.”