The price of WTI oil turned negative for the first time in history

The price of May futures for WTI crude oil turned negative for the first time in history, according to trading data on the commodity exchange in New York.

Prices for supplies in May fell by 162 percent to $ 11.42 per barrel. On the London ice exchange, the negative indicator was 104 percent — 0.75 dollars per barrel.

Such unprecedented prices are explained by the fact that Tuesday will be the last day for the sale of this oil. At the same time, there is no place to store this raw material — demand has fallen sharply, and storage facilities are almost full.

June futures for WTI are also falling by 18 percent to $ 20 per barrel, while Brent North sea oil has fallen by almost ten percent to $ 25.43 per barrel.

The fall in demand and prices

The spread of the coronavirus caused a sharp drop in oil demand, as many States closed borders and businesses suspended operations.

Quotes also collapsed since in March OPEC+ could not agree on a new deal. Members of the Alliance signed a new agreement in mid-April, but this did not help to stabilize prices.

OPEC and the International Energy Agency expect a record drop in demand for raw materials this year amid a glut of oil on the market.

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