For sale 21 April, the cost of the two benchmark grades of oil – North sea Brent and U.S. WTI fell by more than 20%. This is evidenced by trading on the London stock exchange.
Currently June futures of WTI crude oil traded at $16.4 per barrel by 20.46% lower than at the close of the previous trading day. During the day quotations fell to $14,45 per barrel.
Brent crude is trading at $20-21 per barrel (down approximately 20%). This is the minimum cost of Brent crude oil since February 2002.
April 20, the price of us WTI for the first time in the history was negative. As the findings of trading on the new York stock exchange, may futures WTI (term of conclusion of contracts with the execution in may expires 21 April) cost minus $16,74 per barrel. 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.
By the morning of 21 April the may futures of WTI has returned to positive values and was trading at $1,42 per barrel.
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.