Last Monday was "black" for oil prices

2020-04-21 12:02:36
Machine translation
Last Monday was "black" for oil prices

Yesterday for the first time in the history of the world oil prices became negative. May futures of crude oil of WTI for the day was hit three times, from 18.3 $/bbl to minus of 40.3 $/bbl as a result of free storage to buyers.

 

expiration of the may WTI oil futures end today, therefore, the owners of the contracts had to pay the buyers almost for 39 $/barrel, so they agreed to buy the futures.

 

the Restrictive measures of the pandemic Covid -19, decreased in April, global demand for oil is 30% or 30 million barrels/day,while the world's producers agreed to cut production only 9.7 million barrels/day. As a result, the oil has filled all the tanks to store it and even tankers, which are used as storage on the water.

 

Manufacturers sometimes advantageous to give oil for free, than to preserve the well as continued restoration of their work causing big losses or even decreases well productivity. Now the majority of oil producers hoping for a speedy recovery and rising oil demand in the coming months. Therefore, the June futures for WTI crude yesterday fell by only 20% to 20.8 $/barrel. They supported the statement made by trump that amid rapid fall in oil prices, the US will add to its strategic reserves by purchasing approximately 75 million barrels of oil.

 

crude oil Futures Brent crude yesterday fell by only 10% to 25.3 $/barrel.

 

in the Near future a similar situation could occur with Russian Urals oil, as sellers of crude oil from Saudi Arabia actively promoting its more cheap and high quality oil to the EU market, where traditionally the main supplier of oil was Russia.

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