On Monday, it fell from $ 20.43 a barrel to $ 21 a barrel
New York … News Time
US crude prices return to recovery after falling 0.00% for the first time due to falling demand and rising reserves Asian stock markets have also been hit hard by the decline. According to a report by the foreign news agency AFP, the global economy, transport and factory work stopped due to coronavirus, West Texas Intermediate for delivery in May fell to an unconventional minus 37.63 dollars, oil 1.10 dollars per barrel. Fluctuations in prices are due to the expiration of contracts, which means that merchants have to find buyers again, which has become very difficult and merchants have a lot of storage. The June contract, which has a trading volume of 30 times, rose from 20 20.43 a barrel to 21 21 a barrel on Monday. International benchmark Brent Crude for June oil price has reached $ 25.75 per barrel.
JPMorgan Asset Management Altahawi of JPMorgan Asset Management said the crisis in West Texas came at a time when the market lockdown in demand was expected to continue in May. “It’s not surprising, flights are not running, people are driving less, hopefully if the economy reopens late, we will see more pressure on it,” he said. He said that the companies are still producing oil as it is not possible for some to reduce production as it could completely destroy their oil wells. They can afford to continue producing oil for a month but don’t close it.
It should be noted that last month, oil prices had dropped sharply at the start of the war against the non-OPEC member of Russia, a key member of the Organization of the Exporting Countries (OPEC). Earlier this month, Riyadh and Moscow agreed to reduce oil production by one million barrels per day, ending the dispute. However, oil prices continue to fall, which analysts say is not enough to offset the massive drop in demand caused by the virus. The US Energy Information Administration says crude oil storage in the world’s largest economy rose to 1.12 billion 50 thousand barrels last week.
