US, WASHINGTON (ORDO NEWS) — Oil futures fell again on Monday, with futures for the US WTI sinking to 1999 levels, which was due to lower demand and fears that there would soon be no room left in the US oil storage facilities.
The oil market was under pressure due to information about a sharp decrease in fuel consumption and gloomy forecasts of OPEC and the International Energy Agency.
The volume of oil in US storage facilities, especially in Cushing, Oklahoma, is growing despite the fact that refineries are reducing production due to falling demand. [EIA / S]
The cost of the May contract for WTI fell by 18.72% to $ 14.85 per barrel to 9.33 Moscow time, previously collapsing by 21% and reaching the level of $ 14.47 per barrel – the lowest since March 1999.
This contract expires on Tuesday, and the June contract, which is starting to bargain more and more actively, fell 5.8% to $ 23.58 per barrel.
Brent futures also declined 2.78% to $ 27.30 a barrel.
The drop in oil prices reflects an increase in stocks at Cushing’s main storage and declining demand, said Michael McCarthy, chief market strategist at CMC Markets in Sydney.
“They (storage facilities) did not reach their maximum capacity, but there are concerns that they have reached it,” he said, adding that as soon as this moment arrives, manufacturers will have to reduce production.
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