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US oil lost record price. May futures for WTI are less than $ 40 a barrel. This is the minimum mark in history.
The record drop was due to overflowing United States oil reserves in record low world demand, according to Bloomberg.
Major oil prices are volatile: Brent rises slightly, US WTI. USA Is under
The publication also noted that In Alaska, the price of oil dropped. According to the Dow Jones Index, the cost of the WTI fell below $ 40.
Note that as of April 20, oil prices at 12:00 have already started to decline. Then the May futures fell 19% and a barrel of oil cost $ 15. However, on the night of April 20, WTI fell to a record low.
Pay attention! Due to the coronavirus pandemic, the demand for “black gold” has decreased by about 20 million barrels per day. Oil prices have broken 20-year highs. This is a drop in prices in the first place. It threatens American companies that produce expensive oil.
What is known about WTI?West Texas Intermediate is a brand of oil, the price of which is used as an indicator of world fossil prices. One of the so-called oil marker varieties. WTI futures are traded on the New York Mercantile Exchange. Mined in West Texas.
The fall in oil prices: the main thing
- American was cheaper before that. For example, the contract price for May 17 was less than $ 19 a barrel.
- OPEC + April 4 agreed to reduce oil production in May – June by 9.7 million barrels per day. In addition, from July to the end of 2020, oil production will decrease by 7.7 million barrels per day (18%), and from January 2021 to May 2022, by 5.7 million barrels per day (14%).
- After the tender was opened, the price of Brent crude oil in ICE shares fell 1.7%. This happened after OPEC + countries agreed to reduce world oil production by 13%.
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