:: Market News --- ID :: 17320
crude today // 21-4-2020
WTI may contract still has a negative price

By Srinivas Chowdary Sunkara // petrobazaar // 21st April 2020.

Brent oil June futures are trading $4.87 or 19% lower at $20.7 today on London based ICE futures Europe exchange while WTI oil May contract futures are trading with a negative pricing of around $5 today as thin trading volumes contributed to the wild price action that pushed the contract price into negative territory. The most active WTI June contract pared the earlier gains and slipped $4.9 or 24% to trade at $15.53 a barrel on NYMEX. In Shanghai, Crude oil main contract futures dropped by 11.5 Yuan or 4.78% at 229.2 Yuan/barrel. In India, MCX crude futures to be delivered in May tanked Rs.338 or 25.28% to close at Rs.1324 and April contract futures, which expired yesterday slumped to Rs.965 during the yesterday's session. 

The world crude oil continue unprecedented sell off due to unchanged fundamentals like faltering demand amid global shut down and unavailability of space to store the oil. Oil futures are trading in negative territory means that producer pay some body to take oil. On the other hand, OPEC+ group agreed to rein in 10% of global supplies wef May 1st. It seems that the guys in the group are not keen in the deal as the Russia rose production at 1% last week and 50 Mb of Saudi oil is in on sea waters. To dealt with the situation, Analysts advise to shut the crude production as the producer is paying three times for the same barrel of oil while taking out, bringing and again to put in ground. Traders are not optimistic about the recovery of oil prices till the 2H20. I hope OPEC+ cuts from May 1st and U.S voluntary cuts may put some floor for the oil prices. Turning to data, API predictions are due later today followed by EIA numbers tomorrow. 

Good day to all.

Disclaimer: Views and opinions expressed here are personal. This commentary is  for  information purposes only and not an offer or a solicitation to sell or buy any physical commodities or financial instruments. The views and analysis are based on reliable public information available at the time of writing. This report and its content cannot be copied, redistributed or reproduced in part or whole without the prior written permission of petrobazaar.com