In the evening of 22 April, the June futures for oil grades Brent and WTI began to rise. This is evidenced by trading on the London stock exchange.
So, at the time of publication of the news U.S. reference oil WTI rose by 18.57% compared to the price at the close of the previous trading day – to 14.21 per barrel. The maximum price of WTI during the trading session was $16,04 per barrel.
Supply contracts of North sea Brent with maturity in June traded$of 20.24 per barrel by 4.49% higher than the day before. At the maximum quotation has reached the $22.4 per barrel. This morning the price was dropped to $15,99, which is the lowest level since 1999.
April 20, the price of us WTI for the first time in the history was negative. According to the Agency Reuters, 20 APR quotations fell to minus $40 per barrel. It also triggered the collapse of prices on the European spot market (prisoners in this market contracts are executed immediately). The estimated price of the Russian benchmark Urals oil fell to minus $3 per barrel of North sea benchmark Brent crude to minus us $3.5.
The rapid fall of oil prices caused a record drop in demand for hydrocarbons because of the pandemic coronavirus, and the ensuing economic crisis and fears of traders that storage facilities will soon be filled.
As noted by the professional edition of ICIS, the traders tried to sell the may futures as they are traded today is the last day. However, due to the limited number of customers, the rate has moved into negative territory.
Oil prices decline despite progress in early April, the agreement of the Organization of countries – exporters of oil and its allies to cut oil production to 9.7 million barrels per day in may and June, which is about 10% of the total placed on the market of raw materials. About the same volume should provide countries outside of OPEC, but, as noted by Reuters, this is not enough to remove the excess from the market.