Talk of a potential deal among the world’s major oil producers to cut supply by historic proportions caused crude futures to skyrocket this week.

The development began Thursday with a tweet by President Trump raising expectations that OPEC and Russia could strike a deal that would lift oil prices after recording a 65% decline in the first quarter.

Global crude inventories have begun to show significant increases caused by an unprecedented drop in oil demand, an outcome of the ongoing economic paralysis.

With Saudi Arabia vowing to supply record-high volumes starting next week, the trend of inventory builds looks set to continue.

How much more room even exists until storage reaches maximum capacity?

Will the world run out of storage to place unwanted barrels of oil?

The reduction in oil demand caused by coronavirus-related turmoil and Saudi Arabia’s record-high production have combined to create a massive oversupply. Where will it all go?

Oil prices have collapsed over the last few weeks, with NYMEX crude and ICE Brent hitting lows Wednesday last seen 2002-03.

This week’s oil price crash was historic in scale, with Monday’s price decline ranking as the second-largest ever in percentage terms.

The catalyst came Friday when talks in Vienna between OPEC and Russia failed to deliver a new round of supply cuts.

For three years, this coalition representing 40% of the world’s oil had coordinated to hold supply off the market.

Could OPEC and Russia agree to cut oil production by enough to offset the loss of demand resulting from the coronavirus?

That question framed this week’s gathering of oil ministers in Vienna, with the outcome no doubt having a big impact on oil prices.

The global crude benchmark plunged more than $18 per barrel (-26%) to almost $50/b from early January to late February.

It’s the biggest week on the social calendar for folks in the oil industry.

In late February, London hosts a week of conferences and cocktail parties, drawing thousands from around the world.

But far fewer made the journey this year, as the coronavirus outbreak forced many to stay home instead.

Oil prices rebounded this week after being pummeled for the last month by economic concerns stemming from the spread of the coronavirus.

Those fears remain in place, but oil traders saw some positive headlines elsewhere.

This week the International Energy Agency (IEA) weighed in on the biggest question facing the oil market.

“Global oil demand has been hit hard by the novel coronavirus and the widespread shutdown of China’s economy,” the IEA said in its latest monthly report.

Oil demand will fall by 435,000 barrels per day (bpd) in the first quarter, compared with the same period a year ago, marking the first quarterly decrease since 2009, according to the IEA.

The outbreak of the coronavirus has dealt a severe blow to oil demand causing prices to plummet the last few weeks, with benchmark Brent crude down nearly 20% year-to-date.

The presumption is that crude inventories will rise as refineries cut runs, first in China and possibly elsewhere if the virus cannot be controlled.

Our latest data shows some examples of rising inventories in China, while overall, storage levels can be described as medium-full.

For the first few weeks of 2020, the focus in the oil market has been on geopolitics in the Middle East and concerns about the coronavirus outbreak.

Both stories have major implications for oil supply and demand, respectively.

The headlines have moved prices for oil futures, but the actual impact on the physical market has so far been limited.

Let’s focus, instead, on a story in the physical market involving the movement of molecules.

It’s the time of year to make predictions.

This week, we attended an event hosted by the New York Energy Forum (NYEF) to discuss the outlook for oil prices.

Where are oil prices headed in 2020? What will be the main stories impacting the market?

A survey conducted by NYEF showed most respondents believe oil prices in 2020 won’t stray far from current levels.

How much oil is in storage in case of a supply disruption?

Over the last week, this perennial question moved front-and-center as the escalating conflict between the US and Iran put Middle East energy infrastructure at risk of becoming military targets.

The situation in the Middle East was the most dramatic in a series of events around the world raising concerns about the security of oil supply.