At its worst the price reached negative $37.63, a phenomenon which has never occurred before. Traders holding the contract were unable to find buyers, because no one with the ability to take delivery wanted it. Although global storage is more readily available than U.S. storage at this point, Sarkar said, "one might wonder. if traders can not access USA storage for physical crude deliveries in May, how will they find storage for June?" The collapse is reverberating across the oil industry, ...
Brent Crude , the global benchmark for price that is more widely used, was trading at $25.57 per barrel. Demand for oil has all but dried up as lockdowns across the world have kept people inside. Investors rushed to buy bonds, which pushed down U.S. Treasury yields, with the five-year note hitting a new record low as the difficulties of restarting the U.S.
The oilfield engineering company said that the pandemic has created so much turmoil in the industry that it "cannot reasonably estimate" how long the hit will last. Travelers Companies, the first of the big USA insurers to report results, reported a 25% fall in quarterly profit, hurt by higher catastrophe losses, but its shares rose 2.9%.
The ringgit touched an intra-day low of 4.3955 against the United States dollar in early trade today, as the latest oil market havoc where traders dumped barrels in absence of demand sparked concerns over impacts on the Malaysian economy, where a fifth of federal revenue comes from oil.
That dynamic is playing out amid worry that a key storage hub in Cushing, Oklahoma is nearing capacity, according to Bloomberg . The world is awash with oil , but nobody is buying. A breakdown by type of refined product isn't yet available, but it's likely the bulk of the increase was in gasoline and middle distillates such as jet kerosene and diesel.
Despite the largest production cut ever operated, it is possible that the market remains oversupplied with oil for several months from the catastrophic collapse of demand, caused by the lockdowns established by the governments of the world to slow the spread of coronavirus, the global media notes.