Crude oil futures fell below zero for the first time ever to prevent a deepening economic crisis by crisis crown traders have desperately left to take physical delivery crude oil. On a day with no previous trading, the price deleted for May contracts of all values, all to break down to oil prices since 1946. The exchange, where trading of the contract would be the WTI futures price allowed under zero. The extreme movement showed how the oil market over supplied the US with the industry and business to a halt as governments around the world has been arrested in the extended crown because of a rapid spread. a week ago to curb the supply of a third of the collapse in global demand unprecedented output agreement by OPEC and related members proves to be late enough in the face. Monday ‘, a technical curiosity intensified price jump as traders the May futures contract before it expires tomorrow fled. The contract of the following month fell 12% to $22.05 a barrel, so that the spread between the two months to blow more than $20. “There is little physical market to prevent further sharp downward path in the near future, “said Michael Tran, director of global energy strategy at RBC Capital Markets. “Refiners are barrels result in a historic pace and with levels of US storage Sprint refusal to the brim, the more pain market forces until we have destroyed either on the ground or delete COVID, whichever comes first, but it seems that the first. “the beginning of the year immersed in oil prices, after the composition of the corona effects and a collapse of the original contract + OPEC. With no end in sight, and producers around the world continues to pump that the cause was a fire-sale operators who have no access to storage. There are signs of weakness in the world. The buyers in Texas have as little as $2 a barrel for some oil flows, raising the possibility that manufacturers may have to pay soon be taken before, to get hands. In Asia, bankers are increasingly unwilling goods trader to give the credit to survive as lenders grow increasingly afraid of the risk of a catastrophic default. In New York, West Texas Intermediate for delivery in May fell from – $1.98 per barrel. And ‘the most low monthly in tables of data continuously since 1946, shortly after the Second World War, according to data from the Federal Reserve Bank of St. Louis. Brent was down 6.5% at $26.22. Crude stocks at Cushing -Latin key storage hub and delivery point for West Texas Intermediate contract – rose by 48% to almost 55 million barrels as of the end of February. The hub was working storage capacity of 76 million on September 30 after the Energy Information Administration. Fund Inflow Despite the weakness of the share price, retail investors continue plow back the money in the oil futures. The US Oil Fund ETF to take a record of one million on Friday, $552 is a total of inflows last week for $1.6 billion. The fall in prices is taken on the oil sector. Crude oil explorers close on 13% of the American drilling fleet last week. During production cuts in the country gaining pace is not fast enough to avoid storage is at the highest levels, said Paul Horsnell, head of commodities at Standard Chartered. “The background of psychology is just massive bearish now,” Michael Lynch, president of Strategic Energy & Economic Research Inc., said in a telephone interview. “People think it will be very difficult to solve in the near future are concerned that we will build so much to see inventory, and will be very upset burden on the market to be. People are trying to get rid of to get the oil, and there are no buyers “. -With the help of Javier Blas and Elizabeth low. Image from Zhengsheng copyright-Getty Images
The oil futures price fell below zero for the first time ever. Here because
