Regarding why the oil price is negative, Yan, vice president of Longzhong Information, a hedge research investment link, explained that the most important factor affecting oil prices at present is not the production cost, but the inventory, especially in inland oil-producing areas. The epidemic caused problems such as poor infrastructure and transportation logistics, which made it difficult to transport or store crude oil abroad. It is risky to stop production purely for economic reasons, so production must continue. If the storage tank inventory is insufficient or the storage cost is too high, the manufacturer would rather accept the negative oil price and lose money for the buyer to take away. Next, Kim.

As to why the United States plunged sharply on Monday in May, before the contract expired in May, the International Energy Agency (IEA) predicted last week that the world oil demand would decrease by 9.3 million barrels per day compared with last year, and the demand in April would decrease by 29 million barrels per day compared with last year, reaching the lowest point since 1.995. Us energy information administration (EIA) announced last week that US crude oil inventories increased by 654,300 last month.

For traders, if the long meeting in May is unfair, it means accepting spot oil, and only a few days to tell the seller how to accept it. However, at this time, you can't go to Cushing to find oil storage space. The May contract has become a hot potato for traders with pure virtual trading. Therefore, WTI futures suffered a crazy sell-off and fell to a negative value for the first time in history.

It is worth noting that the contract slump in May was also related to the insufficient trading volume. According to the data of Shang Zhi Research Institute, the turnover of WTI5 contract in May was about126,400 lots. In other words, the price can be reduced with small funds, and it was nearly 800 thousand in June.