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The price of Petroleum benchmark in the United States almost collapsed a 25% this Monday at closing, due to market concerns about a saturation of storage capacities in a context of oversupply.
Thus, the WTI quoted in New York for delivery in June fell 4.16 dollars at the close to $ 12.78 a barrel.
In London, the North Sea barrel of Brent for June delivery lost nearly 7% to $ 19.99.
Last Monday was an unprecedented day in the history of the oil market, when the barrel for delivery in May closed negative, with investors paying to get rid of their contracts and thus avoid having to locate physical oil.
The downtrend in the market shows concerns about “levels of crude oil storage increasing” and approaching their limits, as well as about cuts in extraction in producing countries “that do not respond to the real needs of the market,” said Bjornar. Tonhaugen, analyst at Rystad Energy.
In April, the Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed to a production cut of some 10 million barrels per day from May, but the fall in demand due to strategies to combat the coronavirus -which reduced mobility in the world- could represent a volume of more than double.
“Globally, the oversupply is 16 to 17 million barrels per day,” said Bart Melek of TD Securities.
Crude oil reserves they fill up at full speed and could reach their limit in a few weeksAccording to several analysts, a situation that puts downward pressure on prices.
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