- Crude fell 43% in the new reference month and stood at almost $ 12
- US oil entered negative values and with storage problems.
Texas Intermediate Oil (WTI) closed Tuesday with a 43.37 percent drop in futures in June, the new reference month, leaving the barrel at $ 11.57, while May contracts, in their Last day of management, they recovered to positive digits but already with very little volume of contracting.
At the end of trading on the New York Mercantile Exchange (Nymex), WTI futures contracts for June delivery were subtracted by $ 8.86 from the previous session on Monday, in which there was a historic crash of 305 per percent and, for the first time since there are statistics, US crude oil entered negative values and with storage problems.
The sell-off affecting the oil market is now spreading to more futures contracts, worrying investors about the deep economic damage that closures in the economy are causing as a result of the coronavirus. In this regard, contracts for July delivery fell approximately 31 percent to $ 18.04 a barrel.
“Oil futures continue to defy gravity,” Louise Dickson, oil market analyst at Rystad Energy told CNBC: “This moment is, of course, historic and could not better illustrate the price utopia the market has been in. since March, when the magnitude of the problem of excess supply began to be evident, but the market remained alien. ”
And as storage continues to fill, some warn that prices may be negotiating at extremely low levels in the future.
“We expect extremely weak fundamentals to persist for at least the next month,” Deutsche Bank analyst Michael Hsueh wrote in a note to clients.
The coronavirus pandemic has led to an unprecedented loss of demand. The International Energy Agency warned in its monthly oil report that it was closely observed that demand in April could be 29 million barrels per day lower than a year ago, reaching a level last seen in 1995. And with places To store crude oil by filling up quickly, some argue that prices could stay lower longer.
In this context, gasoline futures contracts maturing in June, the new reference month, fell to $ 0.56 a gallon, and natural gas contracts, maturing the same month, stood at $ 1.98 for every thousand cubic feet.