European stocks fall due to oil crisis
At 0825 GMT British FTSE index has been trading 1.5% lower, French CAC 40 tumbled down 2.1%, the DAX went down 2.2%. The regional Stoxx 600 Europe lost 1.4%.
The WTI crude barrel price scheduled for May ended up at minus US$37.63 on April 20, the day before the end of the monthly trading. Traders are actively seeking ways to avoid new deliveries, since there is not enough storage due to the market glut.
The same Brent contract still trades around US$20. The stock of major oil companies such as BP, Shell and Total SA lost 4%-5%. The oil & gas subsector of Euro Stoxx dropped 4.1%. Overall demand for oil fell 30%.
Aside from oil market, shares of Associated British Foods went down 4.5%. The company has stated, that it is not planning to pay an interim dividend. It also is not able to provide an adequate earnings forecast for 2020.
On the other hand, London Stock Exchange shares went up 3% as market volatility resulted in a rise of first-quarter income.