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AFP
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1/7
The price of US crude oil fell into negative territory for the first time.
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AFP
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2/7
An oversupply with falling demand is currently exacerbating the situation.
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AFP
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3/7
Oil demand has plummeted due to the Corona crisis.
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Bloomberg via Getty Images
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7/7
The oil stocks in many countries are already full to the brim.
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The US oil industry is in shock: Since the so-called futures trading was introduced in 1983, the price of US crude oil had never dropped as low as this Monday. Meanwhile the price rattled to minus $ 53 for deliveries in May!
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In futures trading, the seller undertakes to deliver a specified amount of goods – in this case oil – at a fixed price and date. And this Monday this price really dropped.
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Bearings are full to the brim
There are several reasons for this historic low: First, the oil industry is not spared the Corona crisis. The supply of oil is currently undiminished. However, because stores are currently closed, production facilities are down and deliveries have ceased, the demand for oil, petrol and diesel has largely collapsed.
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In addition, many countries have hardly any storage capacity left and cannot take up any more oil.
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Higher prices again in June
Other oil producers such as Russia or Saudi Arabia have already announced that they will react to the corona crisis and want to cut oil production in the foreseeable future. However, experts doubt that this can bring the relationship between supply and demand back into balance.
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There is also a small ray of hope for the US oil industry in this critical phase: For deliveries in June, the prices of future trading are again significantly higher.
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Markets react in shock
The fall in the US oil price weighed on Wall Street at the start of the week. The Dow Jones index of standard values closed 2.4 percent lower at 23,650 points. The technology-heavy Nasdaq dropped around 1 percent to 8,560 points. The broad S&P 500 lost 1.8 percent to 2823 points. (cat / SDA)
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Corona virus—
The corona virus currently occupies the whole world and there are new developments every day. All current information and figures on the subject are available in the Coronavirus ticker.
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