Oil futures contract to 1999 levels with falling demand and scarce US storage

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demand caused by the coronavirus pandemic and growing concerns that the United States is running out of storage. “Data-reactid =” 19 “> Oil futures prices have fallen to 1999 levels due to lower demand caused by the coronavirus pandemic and growing concerns that the United States is running out of storage.

WTI futures fell 15% on Monday to less than $ 16 a barrel as a deal between OPEC + and other producers failed to counter lackluster pandemic-triggered demand of coronavirus.

The May WTI contract, which expires Tuesday, at some point reached $ 14.47 a barrel, a price unprecedented since 1999.

The more widely traded June contract fell 5.1% to $ 23.57 a barrel. Meanwhile, Brent crude fell nearly 1%.

according to Bloomberg. & nbsp; “Data-reactid =” 23 “> According to Bloomberg, the short-term prices of the WTI are negotiated with substantial discounts compared to subsequent contracts, because the American storage center in Cushing, Oklahoma, will reach its maximum capacity.

The decline in crude futures is an indicator that there is a mismatch between demand and supply, according to Reuters.

OPEC and Russian production cuts are slated to begin in May.

Fuel demand has dropped 30% globally.

Oil price action

At the time of publication on Monday, WTI futures traded 15.44% to $ 15.45 a barrel in New York, while Brent futures traded 0.71%. at $ 27.88 at ICE Europe.

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