For the first time in history, US oil prices were negative. This means that oil producers are paying buyers to inventory inventory for fear that their storage capacity may end in May.

US oil prices were negative as demand decreased

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For the first time in history, US oil prices were negative. This means that oil producers are paying buyers to inventory inventory for fear that their storage capacity may end in May.

For the first time in history, US oil prices were negative. This means that oil producers are paying buyers to inventory inventory for fear that their storage capacity may end in May.

Oil demand almost dried out as regulations around the world kept people at home.

As a result, oil companies hire tankers to accumulate additional investments, which leads to negative US oil prices.

One barrel of West Texas Intermediate (WTI), the U.S. oil standard, fell to minus $ 37.63 a barrel.

The technical characteristics of the global oil market fell sharply on Monday. Futures contracts for May are expected to close on Tuesday with the start of oil futures trading. Traders sought to dilute these stocks so they would not have to supply oil or bear the cost of storage.

West Texas Intermediate crude prices also fell in June, but were traded above $ 20 a barrel. Meanwhile, Brent crude, the index used in Europe and the rest of the world, fell 8.9 percent to less than $ 26 a barrel.

The oil industry is struggling with increasing demand and conflict between producers to cut production.

Earlier this month, OPEC members and allies agreed to a record deal to cut global production by about 10%. This deal resulted in the largest drop in the approved oil production ever.

But some analysts say the wounds will not make much difference.

“It didn’t take long for the market to realize that the current form of transactions with OPEC + was not enough to balance oil markets,” said Stephen Ines, chief strategist at Axecorp global markets.

The main exporters, OPEC and their ally Russia – have already agreed to cut production to record levels.

Oil companies in the United States and elsewhere have made trade decisions to cut production. But there is still more to use crude oil in the world.

The only important thing is if we can use it. It is also a question of whether we can store it until the locks are unlocked to create additional demand for petroleum products.

The tank quickly fills on land and sea. As this process continues, you will likely control prices.

A recovery in demand is needed to actually change the market, and that will depend on how the health crisis evolves.

There will be more supply cuts as private manufacturers respond to lower prices, but it is difficult to understand why they are large enough to have a material impact on the market.

The presentation is gray
Meanwhile, shares in Cushing, the main supplier of oil in the United States, have risen nearly 50 per cent since early March, and fears that the United States is running out of resource stocks. “We hope to be fine again this year,” the bank said.

“This is a landslide at any cost because no one wants to supply oil every minute through Cushing’s storage facilities,” said Mr. Ennis.

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