US crude bounces back into positive territory after historic plummet below zero
The US benchmark futures jumped by over 100 percent, crossing the $0 milestone again – albeit to trade at around $1.36 per barrel at the time of writing.
Earlier on Monday, a May contract for WTI – set to expire on Tuesday – finished trading at a shocking -$37.63 per barrel. However, the June contract rose to around $21.35 during Asian stock market hours.
Meanwhile, Brent, the global benchmark, is trading below $25 per barrel, suffering from a slight decline earlier in the day.
Monday’s WTI collapse marked the first time a crude oil futures contract has ever gone in negative territory since the New York Mercantile Exchange (NYMEX) started trading it in 1983. US markets also went down as a result, with the Dow Jones Industrial Average closing below 550 points on Monday, while the S&P 500 and Nasdaq fell by 1.6 and 0.8 percent respectively.
Global oil storage is currently reaching its limits because of the dropping demand caused by the coronavirus pandemic. Previously, OPEC+ managed to agree a 9.7 million barrel per day cut in production following marathon talks, but fears still persist that crude prices could remain at their lowest levels because of April’s supply glut.
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