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The New York West Texas Crude Oil Contract (WTI) market closed at the negative level for the first time last night (April 20) due to concerns about lower oil demand due to the effects of the livestock virus. Wid-19 In addition, oil prices are under pressure as the United States’ oil deposits store oil near its maximum capacity. Amid the oversupply of oil
WTI crude oil for May delivery. A drop of $ 55.90, or 306 percent, to close at -37.63 dollars / barrel.
Brent crude contract for delivery in June. It was down $ 2.51 or 8.94% to close at $ 25.57 / barrel.
WTI crude fell to the negative level for the first time since the NYMEX oil contract was traded, as investors are still concerned that the worldwide government is using blocking measures. This includes ordering people to stay indoors and banning travel to control the outbreak of the covid-19 virus, which will result in the need for oil to decrease.
The International Energy Agency (IEA) issued a warning report that the Covid-19 virus outbreak crisis will reduce oil demand by 29 million barrels / day in April It touched the lowest level in 25 years because countries have taken measures to limit travel to control the Covid-19 outbreak.
In addition, Goldman Sachs also commented that Oil Exporting Countries (OPEC) and national allies. Or OPEC Plus reached an agreement to reduce oil production capacity to 9.7 million barrels / day. Considered too little AND not enough to help offset the effects of heavy oil demand that has fallen in the past
Analysts at Price Futures Group in Chicago said that, in addition to concerns about the effects of Covid-19, US oil deposits are storing oil near full capacity. While the United States’ oil reserves hit a record. It’s another reason investors reached the May WTI crude oil contract in May, due to be delivered on Tuesday, April 21.
The June WTI contract fell $ 4.60, or 18.3 percent, to close at $ 20.03 / barrel last night.
Investors monitor the United States Crude Oil Stock Report. The United States Energy Information Administration (EIA) plans to release the data tomorrow at 9:30 p.m. Thai time.
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