The price of WTI oil recovers after a negative value

After a historic fall, WTI oil prices returned to the green zone. It is reported by Enkorr.

The cost of a barrel of June Brent oil on April 21 at 8:37 Kyiv time was $25.39 (-0.70%). A barrel of June WTI oil was trading at $ 21.43 (+ 4.94%). Previous trading ended at $25.57 and $20.43, respectively.

Yesterday, April 20, according to trading at the New York Exchange as of 21:46 at Kyiv time, WTI crude oil quotations fell by more than 100%, falling to $-37.63 per barrel, Economichna Pravda reports., Monday evening, April 20.

A negative oil price implies that oil producers are now ready to pay the buyer, Forbes reports. Since oil storage facilities are full, for some manufacturers it is cheaper than to suspend production or to seek new capacities for storing raw materials.

June futures for WTI may soon also show negative values.

“Storage of oil next month will be even a bigger problem, so if there is no significant recovery in demand, negative prices can be reached for the June futures,” agrees ING's chief commodity strategist Warren Patterson.

Recall that the price of WTI American oil fell below $15 for the first time since 1999. As of 08:00 at Kyiv time, April 20, the cost of the nearest futures for WTI crude oil fell by 23.36%, to $14.81 per barrel.

CMC Markets analyst Michael McCarthy believes that the decline in WTI oil prices reflects a decline in demand and an overflow of major US storage facilities in Cushing. According to ANZ Bank, stocks of raw materials in Cushing, the main point of oil delivery to the United States, have increased by almost 50% since the beginning of March.

Tags: contracts, oil, hydrocarbon production, legislation, Top management, USA, добыча нефти, drilling, коронавирус, RF, foreign affairs, negotiations, stocks, agreement, route, oil products, infrastructure, quarantine, Brent, WTI, pandemia, Saudi Arabia, Trump, oil pipeline

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