Oil is in FREE FALL, Could it go to $5 Per Barrel?
Posted on 04/20/2020
The barrel price of West Texas intermediate, also known as Texas light sweet, keeps falling. It fell to US$ 10.01 per barrel earlier, crashing as much as 40%. This is the lowest price since April 1, 1986. The world is running out of places to store the excess amounts of oil as demand for it evaporates.
Now WTI front-month oil prices are at US$ 8.75 per barrel. This is at the lowest level since around December 1973.
Furthermore, the WTI market has entered contango. Contango is when spot prices are lower than the future delivery prices, in this context, the future delivery price of oil.
CME Group says that MAY WTI futures can trade negative.
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BREAKING 10:30 AM PST – WTI front-month May contract at US$ 1.03 a barrel.
11:53 AM PST. – WTI May oil futures settle at US$ -37.63 a barrel.
Daily Press Conference – President Trump – President Trump said, “Looking at putting as much as 75 million barrels into strategic petroleum reserves, that would top it out.”