LONDON (Reuters) – The price of US crude and Brent crude contracts for delivery in June fell to the lowest level in two decades on Tuesday, a day after US crude futures turned into May for the first time in history, with demand falling due to the Corona crisis.
Brent crude for June delivery contracts, known as the nearest maturity month contract, after May contracts expired, to $ 18.10 a barrel, the lowest since November 2001. By 1200 GMT, it had lost 18 percent to $ 20.98
The West Texas Intermediate crude contract for May, and trading volume on it significantly lower, -3.99 dollars, after yesterday fell below zero for the first time and closed at -37.63 dollars a barrel.
The deal on a contract closest to US crude due for May ends later on Tuesday, exacerbating losses. With surpluses on the market and storage facilities filling up, the May contract holders found themselves in an unprecedented position burying those who buy crude.
The Kuching storage center in Oklahoma, the United States, a WTI crude delivery point, is expected to fill in weeks.
Kremlin spokesman Dmitry Peskov said that the world’s largest oil producers may hold talks and again to discuss their agreement on production if necessary.
US President Donald Trump described the historic collapse in oil prices on Monday as short-term and caused by “financial pressure” and stated that his administration will consider stopping oil shipments from Saudi Arabia, the world’s largest crude exporter, which is leading OPEC efforts to curb production