US, WASHINGTON (ORDO NEWS) — The price of WTI oil futures has renewed a minimum since 1999. The price per barrel fell below $ 15.
Futures for WTI crude oil for May delivery for the first time since 1999 fell below $ 15 per barrel during the Asian trading session on April 20. Bloomberg attributed the decline to rising concerns that, due to record low global demand, there will soon be nowhere to store raw materials.
At 08:12 UTC, May WTI oil futures were worth $ 14.79 per barrel. In turn, Brent crude on Monday fell 2.81% to $ 27.28 per barrel.
According to Bloomberg, in some areas of supply in Texas, buyers paid up to $ 2 per barrel. Such prices indicate the risks of a situation where manufacturers will have to pay extra to buyers to get rid of oil, the agency said.
Current prices show that a decrease in oil production under the OPEC + deal of 9.7 million barrels per day cannot have a significant impact on the market, as oil prices are once again in the grip of the virus, says Vanda Insights Singapore Executive Director Vandana Hari. Until we get closer to lifting restrictions in the United States, oil prices may fall below or remain at the current level, ”she said.
Bloomberg wrote last week that OPEC countries expect oil demand to drop to a minimum in three decades. “We are seeing record reductions in production, but they are still not enough to bring the market closer to equilibrium, ” the head of the raw materials strategy department at ING Bank NV told the agency.
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