WTI Oil Falls Below $ 15 For The First Time Since 1999
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High volatility remains in the raw materials market
Photo: phoca2004 / Flickr
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The cost of the nearest futures for WTI crude oil fell by 23.36%, to $ 14.81 per barrel as of 09:20 Moscow time. This is evidenced by trading data.
Oil prices fell due to fears of a further fall in demand for raw materials. The cost of the nearest futures for WTI crude oil fell by more than 20% on fears that US oil storage facilities would soon fill up in the midst of a coronavirus pandemic, Reuters reported.
The volume of raw materials in oil storage facilities is growing, as refineries are reducing production due to falling demand. CMC Markets analyst Michael McCarthy believes that the decline in WTI oil prices reflects a decline in demand and an overflow of major US oil storage facilities in Cushing. According to ANZ Bank, stocks of raw materials in Cushing, the main point of oil delivery to the United States, have increased by almost 50% since early March.
ANZ senior commodity market strategist Daniel Hines believes that one of the reasons for the collapse of US oil prices was the upcoming expiration of the May oil futures contract on Tuesday. However, prices are likely to remain under pressure for at least the next month, the expert said.
The International Energy Agency (IEA) predicts that oil demand this year will fall by a record 9.3 million barrels per day, and by the end of April, demand will decline by 29 million barrels per day.
The fall in oil prices continues despite the deal announced by the largest oil producing countries to reduce production by more than 10% of the total world supply. The OPEC + deal was the largest reduction in oil production, but it will begin to operate on May 1, and its impact on the market will become noticeable after a while.
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