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(Reuters) – Oil futures fell again on Tuesday as market panic continued for the second day, with no end in sight of rising global crude oil oversupply as fuel demand collapses due to Corona virus pandemic.
Oil pump in Texas, USA USA – Image from the Reuters archive.
The US June delivery contracts. The US, which were most active in trading on Tuesday, fell to less than $ 10 a barrel for a short period after traders were forced to pay $ 37.63 to ditch every barrel of crude following contract liquidation. expired in May.
Given the shortage of storage capacity and a sharp 30 percent drop in global fuel demand, investment funds continued to sell oil extensively.
While supply appears to outstrip demand for weeks, global benchmark Brent crude for June delivery fell $ 6.24, or 24 percent, to settle at $ 19.33 a barrel.
The US benchmark index, West Texas Intermediate, in June, delivery contracts, which will be close to expiration contracts as of Wednesday, fell $ 8.86, or 43 percent, to settle at $ 11.57 a barrel.
And US crude oil contracts for June delivery hit a record for trade, which totaled more than two million contracts in one session on Tuesday.
At their lowest levels in the session, Brent contracts fell to $ 17.51 per barrel, their lowest level since November 2001, while WTI contracts fell to a record low of $ 6.50 per barrel.
US crude contracts for May delivery recovered from the negative territory that fell in Monday’s session to close 124 percent higher at $ 10.01 a barrel due to Maam.
Storage facilities at the US crude oil delivery center are expected. USA In Cushing, Oklahoma, they reach their maximum capacity in three weeks.
“There is nothing that makes energy distributors think that storage restrictions, stocks and demand fears will lessen,” said Edward Moya, chief market analyst for ONADA in New York.
Analysts polled by Reuters said US crude inventories are expected. USA Increase by approximately 16.1 million barrels in the week ending April 17, after posting the largest one-week increase in history.
The market is awaiting the latest data from the American Petroleum Institute on stocks, to be released later on Tuesday.
Wajdi Al-Alfy prepared for the Arab Bulletin
