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WTI oil has dropped to levels unseen since 1999

by Bunkerist
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Crude oil futures, dropped on Monday, and fell to unprecedented levels since 1999 amid concerns that US storages would soon be overflowing due to coronavirus pandemics.

International research and production companies have reduced their budgets by 20-30%.

The WTI contract CLc1 fell $ 3.40 or 18.6% to $ 14.87 a barrel at 0600 GMT by May. At some point, the contract dropped 21% per barrel, the lowest since March 21, to $ 14.47.

This contract expires on Tuesday and the June CLc2 contract, which was more actively traded, fell $ 1.51 or 6.0% to $ 23.52 per barrel. Brent LCOc1 also fell 90 cents or 3.2% to $ 27.18 a barrel.

Petrol endüstrisi, koronavirüs pandemisi nedeniyle dünya çapında yakıt talebinde tahmini% 30’luk düşüş karşısında üretimi hızla azaltmakta.

Production cuts for allies, including OPEC and Russia, will begin in May. The OPEC + group agreed to reduce production by 9.7 million bpd.

Concerns remain that the 10 million barrel outage will not be enough to compensate for the collapse of demand, so the outlook for oil prices continues to decline.

Officials in Saudi Arabia estimate that the total global supply cuts from oil producers may be around 20 million bpd, with the participation of OPEC, OPEC + including Russia, and voluntary participation of countries such as the USA and Canada.

It is estimated that a record amount of 160 million barrels of crude oil is stored in tankers as a floating storage.

Investors who bought the June WTI contracts sold their May futures before the expiration date, which reached a record $ 8.70 per barrel contangou widened as a record. Excessive contango in WTI indicates that American investors do not expect any gain in oil in the short term.

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