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George Ma
April 21 08:34

For the first time in history, the WTI oil price was negative

Sellers started paying additional buyers for the supply of raw materials
Cost of the nearest WTI oil futures with delivery in May fell by 315% to minus - US$39,44 per barrel as of 19:40 GMT on Monday. According to the data from London Stock Exchange.  

Futures on WTI oil with delivery in June also fell by 20% to US$20.8 per barrel.
The value of the oil futures contract for the first time in history became negative, as there were no buyers left on the raw materials market. Sellers started paying buyers for raw materials supply.
Oil prices continued to fall due to fears that despite the deal on production limitation by OPEC+ countries, the supply on the market will significantly exceed the demand. International Energy Agency (IEA) estimates that in April the world demand for oil will drop by 29 mn barrels per day compared to the level of the previous year.
An additional negative factor for oil prices was the expectation that oil storage facilities will soon be filled. Stocks at the largest U.S. oil terminal in Cushing last week rose to 55 mn barrels, while the maximum volume for storage is about 76 mn barrels. According to Reuters, at the current replenishment rate the storage may be fully filled by mid May.
Baker Hughes' data on Friday showed that the number of active drilling rigs in the U.S. has decreased by more than a third over the past month. But signs of a decline in deliver of raw materials to the U.S. did not help WTI prices to resume growth.