The price of crude oil is negative, which means that the cost of transporting oil to refineries or storing it exceeds the value of oil itself. In this regard, netizens ridiculed that it is time to buy barrels to send oil.
But futures contracts are traded every month. After the May contract expired on Tuesday, the WTI and June contract prices returned to $20.
Jing Wong, senior analyst of Jinlianchuang Energy, said that from the numerical point of view, the spot contract price of WTI has dropped to negative space, which means that the market has entered the United States. Shale oil manufacturers need to pay crude oil buyers to deal with the excess crude oil produced. However, due to the special delivery background, investors in the crude oil market have completed the transfer of their spot contracts to second-line active contracts earlier than before. Now the pricing of spot crude oil trade in most parts of the world has been transferred to June contract, so WTI June contract.
There are different opinions on the future trend of crude oil prices. Bank of America Merrill Lynch commented that it will take several weeks for US crude oil to reach balance again. If demand cannot recover, WTI crude oil expects the futures contract price to fall in June.
Helima, global head of commodity strategy at RBCCapital, went to Croft to comment that there is no oversupply in the oil market and there is no easing in the near future, and the recent oil price outlook is still very worrying.
According to the research report released by CITIC Securities 2 1, overseas countries reached the epidemic peak in April-May. After the Organization of Petroleum Exporting Countries cut production in May, with the recovery of demand, the oil market is expected to be balanced around June, and the inflection point of long-term oil price recovery is expected to appear in the second quarter, and the oil distribution may be restored to more than $50/barrel at the end of the year. Maintain an annual oil distribution center view of $45/barrel.