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The consequences of the Corona crisis are increasingly noticeable on the Rohlmarkt. Due to a toxic mix of sharply falling demand and excessively high supply, storage capacity in many countries is in danger of being exceeded. Investors always want to avoid running out of storage space. Therefore, a futures contract expiring on Tuesday fell extremely low in price.
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He hit the United States Rohl particularly hard earlier in the week. The contract, which provides for a physical delivery of oil in May, fell by almost 90 percent and the price of the WTI brand oil fell to a new all-time low. He lost more than 90 percent up to $ 1.02. This is by far the lowest level of a futures contract since futures trading began in 1983. On the one hand, this shows how strongly supply and demand in the oil market currently differ. On the other hand, it is a very special phenomenon due to the May futures contract on US-1, which expires on Tuesday.
The next futures contract at American Leichtl (WTI) cost significantly more on Monday night than the May contract. A barrel (159 liters) of Texan light oil (WTI) for June delivery was priced at $ 22.30 a night. The North Sea Brent variety costs $ 26.50 per barrel. However, both prices were clearly in red.
Due to significantly higher prices for future oil deliveries, not just for US oil. In the USA, some market participants spoke of a “super contango”. Such a market situation is characterized by the increase in oil prices as its physical delivery is in the future. This may be a sign of currently particularly weak demand or particularly high supply. Both currently apply.
The basic situation in the oil market is characterized by too high a supply and demand is falling sharply. The crown crisis is causing a global economic recession, which has resulted in a drop in demand for oil, gasoline and diesel. Large oil producers such as Russia and Saudi Arabia have recently announced major cuts in production. However, experts doubt whether the reductions are sufficient to match supply and demand.
In the United States in particular, land camps are at risk of exploding at all seams. Since the end of February, inventories at Cushing’s important delivery location have increased by almost 50 percent. As a result, purchase prices paid in the Texas region continue to drop. Meanwhile, there is even a fear that negative prices will soon be due to purchases of raw materials if storage capacities are further reduced. NEW YORK / LONDON (dpa-AFX)
More news on lpreis (Brent)
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