Oil prices fall below zero for the first time in history | Prices has the largest collapse

Oil prices fall below zero for the first time in history

Breaking world news! Oil prices survived the largest collapse in history

All day April 20 quotes on the London Stock Exchange ICE beat anti-records. At about 8 am London time, the cost of a barrel of oil of the American brand WTI (West Texas Intermediate) for the first time in the 21st century fell below $15. However, as subsequent events showed, this was only the beginning: over the next hours, the price fell steadily and passed the $10 mark. A little less than two hours later, a barrel of WTI was already worth less than zero - this alignment means that sellers literally have to pay buyers for the goods, which has never happened before. After another half an hour, quotes dropped to minus 6.89 dollars per barrel, after which trading on the London stock exchange, in accordance with the rules of the site, was stopped. But operations on the New York Mercantile (NYMEX) continued, with the result that the price dropped to minus $40.32 per barrel.

Nobody understands the reasons for the incident.

Metamorphoses occurred with futures contracts providing for the supply of fuel in May. On April 20, trading ends with them, which means that oil workers and professional traders tried to use the last chance to sell the leftovers. WTI is one of the two main grades of oil in the world, along with the North European Brent it is considered the benchmark for the price of which companies in different countries rely on. Historically, a WTI barrel has been cheaper than Brent - the difference is due to the greater remoteness of US fields from end users. WTI exporters are forced to spend more on transportation while maintaining low prices in order to compete successfully with Brent sellers. As a result, they are willing to pay less to the miners. But even in such conditions, the difference between the quotations of the two main world grades usually does not exceed a few dollars per barrel. There is one more nuance: trading in May Brent futures has already ended, and there was no reason for excessive excitement for European fuel. But a similar situation develops every month.

Since the beginning of the year, the world oil market is going through hard times. The collapse of demand due to the coronavirus and the resulting global economic crisis resulted in the March failure of the OPEC + deal to reduce production. As a result, too much unclaimed oil has accumulated in storage facilities around the world. Even the new agreement under the auspices of the Organization of Petroleum Exporting Countries (OPEC), in which many more countries took part, did not give an instant effect - in the near future, the partners' efforts will be aimed precisely at eliminating the excess in the market. However, as analysts point out, physically there is still a place in the vaults and even on the last day of trading the suppliers did not need to sell the goods with all their might, at a loss to themselves. In addition, market participants in one way or another keep in mind the agreement of the largest manufacturers on the planet. The questions and actions of NYMEX executives are raised. The rules of each exchange stipulate a halt in trading in case of too much growth or fall - to cool the ardor of investors. In London, the session ended ahead of time, and in New York, for unknown reasons, continued, no matter what, although both sites are part of the same financial group.

Oil prices fall below zero first time history largest collapse
If you notice an error, highlight the text you want and press Ctrl + Enter to report it to the editor
Be the first to rate
(0 ratings)
No rates yet
No recommendations yet
Log in ,
to rate and recommend


Buses Schedule
Breaking Cebu News! Buses Schedule between Cebu provinces during General Community Quarantine SCHEDULE OF TRIPS Starting June 1, 2020CEBU - ARGAO6:30AM, 9:00AM, 11:00AM, 1:00PM, 3:00PM, 5:00PMARGAO - CEBU6:00AM, 7:30AM, 9:30AM, 12:00PM, 2:00PM, 4:00PM, 6:00PMCEBU - CARCAR6:45AM, 8:15AM, 9:15AM, 10:15AM, 11:15AM, 12:45PM, 2:00PM, 3:00PM, 4:00PM, 5:00PM, 6:00PMCARCAR - CEBU6:00AM, 7:00AM, 8:00AM, 9:00AM, 10:30AM, 11:30AM, 12:30PM, 1:30PM, 3:00PM, 4:00PMCEBU...
321 recovered patients
Breaking Cebu News! 321 recovered patients come back to home Yesterday Cebu City has  a new record. After hospitalization 321 recovered patients come back to their families. Good team job in isolation centers got better results.We have the most number of recoveries recorded today, 279 coming from Brgy Mambaling, 22 from Brgy Tejero, 15 from Brgy Labangon, 2 from Brgy Mabolo, 1 each from Brgy Lahug, Capitol Site and Luz.Our recoveries have reached a total o...
Recoveries in the Cebu
Breaking Cebu News! 164 new recovered COVID-19 patients Second wave by COVID-19 not for Cebu City. 164  recovered patients show for us this is the real situation. This big amount can be way for lifted lockdown and community quarantine. Good team job with Cebu government and front liners got the results. This amount should to be better for exclude second wave of COVID-19 in the Cebu. People should to follow the rules for protect by CoronaVirus. Lockdown and...
51 recovered COVID19 patients in the Cebu
Breaking Cebu News! 51 recovered COVID19 patients in the Cebu, Philippines from Barangay Luz Isolation Center 51 recovered patients from Barangay Luz Isolation Center allready can to come back their home. They are ready join to community and come back to regular life. When they are been in Isolation Center they are got full medical helps and now has been recovered.Karong adlawa, mapasalamaton natong gi-release gikan sa Barangay Luz Isolation Center ang 51...
Coronavirus statistic update May 10,2020
Breaking Philippines news! Coronavirus statistic update May 10, 2020 The Department of Health Philippines reported 184 new cases of COVID-19 in the Philippines as of 4:00 PM. The total number of recovered 1924, confirmed 10794, deaths 719 DOH COVID-19 BULLETIN #057As of 4PM today, May 10, 2020, the Department of Health reports 184 new cases (PH10611-PH10794) of COVID-19.  NCR with additional 77 new cases, Region 7 with additional 75 and 32 new additional c...
CCHD reported 40 new cases in Cebu
Breaking Cebu News! Cebu City Health Department reported 40 new positive cases of CoronaVirus in The Cebu City The Cebu City Health Department reported 40 new positive cases of COVID-19 in the Cebu City May 10, 2020. Total cases 1474, died 7, recovered 31 40 New confirmed posiitive as of May 10, 2020 8am1 new case in Alaska, Mambaling2 new cases in Sambag 21 new case in Bato Ermita1 new case in Punta Princesa33 new cases in Sitio Negative Carreta1 new case...
Aquino International Airport new rules
Today News! Manila, Philippines Aquino International Airport informed about new rules after open During the month starting tomorrow, all incoming charter and commercial international flights to Manila will be able to land at Nina Aquino International Airport (NAIA) only on their designated days.Charter international inbound flights are permitted only on Mondays and Thursdays, and incoming international commercial flights (scheduled) will only be permitted...
Breaking Cebu News! LOW MORTALITY IN THE CEBU CITY reported Government Cebu City During quarantine, according Cebu City Health Department in the Cebu City registered only 7 died cases. That's low mortality because Cebu City confirmed 1434 COVID-19 positive cases. Cebu City Health Department and government the Cebu City still provide the COVID-19  testing, disinfection in some places and isolated people who affected COVID-19LOW MORTALITY IN CEBU CITY. Deput...
17 new positive cases of COVID-19 in Cebu
Breaking News Cebu! 17 new positive cases of COVID-19 reported Cebu City Department of Health According to Cebu City Health Department, during massive testing for today Cebu City got results 17 new COVID-19 confirmed cases.According to Cebu City Health Department, during massive testing for today Cebu City got results 17 new COVID-19 confirmed cases.List of Locations where confirmed COVID-1917 new confirmed cases:2 new cases from Brgy Labangon- Salvador1 n...