Sorry, -$37.63 has appeared.
The reason is still from oversupply, which fell below $20 a barrel at the end of March. Price war in crude oil market, oil storage capacity crisis! ? When it comes to problems and situations, after more than half a month, the worst happened. US oil prices plunged to an all-time low on the 20th, and the New York Mercantile Exchange West Texas crude oil futures for May delivery plunged by $55.9 to close at-$37.63 per barrel. The June delivery price of Brent crude oil in London North Sea also fell by 2. 14 USD to close at 25.94 USD per barrel.
Under the impact of the epidemic, the international oil market presents a rather tragic situation. US crude oil futures prices fell below $0 for the first time in history. The one-day drop of 18% shows that the situation of oversupply in the crude oil market is not only serious.
The epidemic situation warmed up, and there was no obvious improvement trend in March and April, which greatly reduced the global demand for crude oil. Even if the world's major oil producers reach an agreement to reduce production, they will not be able to consume excess stocks in the short term, which will lead to constant pressure on international oil prices.
West Texas crude oil futures due on the 22nd finally plunged by $55.9, or 306%, to-$37.63/barrel. This is the first time that the oil market futures data has been negative since 1983. What does this mean? Oil companies must pay more money to buyers themselves in order to get their oil back.
However, another thing worth discussing is that the WTI futures for May delivery are light, so this futures price cannot be used as an accurate indicator of the oil market.
In addition, London Brent crude oil has been changed to June delivery futures. Brent crude oil is a kind of offshore crude oil, and traders can easily transport it to areas with high demand. Energy? Amrita, in what way Sen said: "Brent crude oil can be loaded on board and shipped to all parts of the world immediately." However, Cushing crude oil stocks in Oklahoma will be fully loaded in May. " Obviously, even the imbalance between supply and demand of offshore crude oil is not optimistic at present.
In order to prevent the spread and deterioration of the epidemic, most countries in the world now require people to go out less, billions of people carry out epidemic prevention at home, and their daily oil consumption has also dropped sharply. At the end of March, Saudi Arabia and Russia just started a price war because of the dispute over production reduction. Since the beginning of 2020, the prices of WTI crude oil in West Texas and Brent crude oil offshore have fallen by half.
The IEA oil market monthly report shows that the global average daily crude oil demand in April is expected to decrease by 29 million barrels compared with 20 19, and the oil demand will return to the level of 1995. The Wall Street Journal pointed out that despite the sharp drop in international oil prices, many market participants are optimistic that economic activities will be on the right track in the third quarter after the epidemic gradually subsides, which may lead to the rebound effect of "super positive price difference" in the oil market. At present, Cushing's inventory will be full next month, which also shows that many traders buy crude oil to hoard goods so that they can sell higher prices in the futures market after the epidemic cools down.
This article comes from car home, the author of the car manufacturer, and does not represent car home's position.