US, WASHINGTON (ORDO NEWS) — Texas WTI oil prices continued to fall on Tuesday. This time the June futures for raw materials experienced a collapse – during the trading on April 21, they became three times cheaper. The price of Brent crude oil fell below $ 18 per barrel for the first time in 18 years.
During the trades on April 21, June futures for Texas-based WTI crude oil declined to $ 6.55 per barrel, while trading opened at $ 21.33. Thus, the American reference grade of oil is experiencing a landslide drop for the second day in a row. By 10:00 p.m. UTC, WTI had recouped some losses – a barrel was worth $ 11.7.
On Tuesday, the price of WTI for the first time in history fell below zero. The cost of one barrel in the moment reached minus $ 40.32, and the trading day ended at minus $ 37.63. Negative indicators showed contracts for delivery in May, which are due on Tuesday evening. At the same time, after a record decline, May futures on Tuesday nevertheless returned to positive values.
The collapse of oil prices is associated with a significant reduction in oil consumption due to coronavirus and quarantine measures. Negative prices indicated that the producers of raw materials are ready to pay extra to customers for taking oil from overcrowded storage facilities. “The infection got to WTI’s June deliveries, which may also be moving all the way to negative levels,” said Rystad Energy analyst Louise Dixon to the Financial Times. “The car accelerates, and the market forces continue to cause damage until we drop to the bottom or the coronavirus stops,” said RBC Capital strategist Michael Tran.
Following the unprecedented drop in the price of WTI, the cost of Brent also declined. The June futures price for its delivery fell by a third on Tuesday morning . By 21.27 Moscow time, the price of Brent was $ 20.32, having decreased by 25.83% compared to the previous day, and at the moment it fell below $ 18, for the first time since 2002. The price of the Russian brand Urals has also fallen. By the middle of the day it fell to the level of December 1998, amounting to less than $ 10 per barrel.
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