The price of WTI crude oil turned negative. Buyers will pay extra

North American crude oil the evening of 20 April for the first time in the history of trades fell to negative values, indicate the data of trading on the exchange, The ICE Futures.

As of 21.45 may futures are traded at -75 cents. Thus, the sellers will pay the buyers $0.75 for each barrel.

Oil with delivery in June 2020 during the day, fell almost 20% at the time of publication of news on trading of $20.9 per barrel.

The rapid fall of oil prices caused a record drop in demand for hydrocarbons because of the crisis and fears of traders that storage facilities will soon be filled.

April 10 OPEC+ announced agreement to reduce the level of global oil production. The agreement was reached a month after the termination of the previous transaction that triggered a record drop in the price of raw materials. By 9 March the price of Brent crude oil has fallen by 30% – up to $33 per barrel, the biggest daily drop since 1991, when the war began in the Persian Gulf. On 30 March the price of Brent crude fell below $23 a barrel.

Despite the fact that OPEC+ signed a deal for a record decline in world oil production, the price of oil on April 13 have remained virtually unchanged. Market participants are concerned that declining oil production will be insufficient to compensate for the drop in demand for hydrocarbons because of the pandemic coronavirus and the related global economic crisis.

On April 16 the Organization of countries – exporters of oil (OPEC) predicted the strongest in the history of the fall of demand for oil in 2020 it will reach 6.8 million barrels per day, while only in April, demand collapses to 20 million barrels a day.

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