Negative oil price plunge a short-term anomaly with limited impact: analysts

Matt Murphy of Tudor Pickering Holt & Co. says the drop in West Texas Intermediate near-month contract prices below negative US$37 per barrel is due to unique circumstances.

Prices collapsed due to fear that storage tanks are growing dangerously close to full amid the coronavirus pandemic, which has severely curtailed global demand for crude oil and refined products. WTI price for May delivery settled down US$55.90 Monday at negative US$37.63 per barrel. Those contracts are to expire on Tuesday.Senior analyst Martin King of RBN Energy said storage at the Cushing, Okla., WTI trading hub is expected to hit capacity within four weeks.

"If you're a seller and you're desperate to get rid of the contract, you're willing to pay somebody to take it off your hands," he said. "And if you're willing to buy the contract, you want to be compensated for what could be enormous risk and not being able to deliver those barrels or store those barrels. So you want to be paid to take that contract."An oil refinery is silhouetted against the setting sun April 24, 2008 in El Dorado, Kan.

One could think someone is trying to deliberately crash oil prices.

Kind of obvious as it is around mid 20 for june

In our dreams negative at the pump prices.

Oil prices have always been manipulated so that's not really surprising

Limited impact Not if your holding May contracts

Sure.

Why are prices at the pumps still high?

I wouldn't bank on that.

Yeah well no analyst saw this coming. no one knows anything

Energy Energy Latest News, Energy Energy Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Oil price goes negative as demand collapses; stocks dipOil futures plunged below zero for the first time on Monday as demand for energy collapses amid the coronavirus pandemic and traders sought to avoid owning crude with nowhere to store it. 👀 -$38 So they’ll pay me to take some? Well, congratulations, world wide movement of zero fossil fuels helmed by Gredo the Gremlin, your wishes have come to fruition.
Source: CTVNews - 🏆 1. / 99 Read more »

Husky Energy, Crescent Point slash 2020 budgets again as oil prices plungeHusky reduced spending for a second time with an additional $700 million in cuts They’re not just slashing budgets, they’re slashing jobs.
Source: nationalpost - 🏆 10. / 80 Read more »

Bottom-calling bets on $4.3 billion energy ETF go bad amid oil plungeThe United States Oil Fund LP, or USO, plunged more than 10 per cent, after investors plowed US$1.6 billion into the fund last week
Source: nationalpost - 🏆 10. / 80 Read more »