U.S. oil drops to lowest level since 1999

20.04.2020 - Korneychuk Evgeniya
U.S. oil drops to lowest level since 1999

Crude oil futures declined on Monday while U.S. futures fell to its lowest level since 1999. This was on top of concerns about global oil demand and the filling of strategic reserves in the United States.

The oil volume held in U.S. storage rose as refiners slowed down production due to weak demand.

The May WTI, which is due to expire on Tuesday, fell 14%, or $2.62, at $15.65 per barrel. The June contract dropped 5.1%, or $1.28, at $23.75 per barrel.

Brent was down 0.8%, or 21 cents, at $27.87 per barrel.

The decline in crude oil prices shows the oversupply in the main U.S. storage facilities, said chief market strategist Michael McCarthy at CMC Markets in Sydney.

The 9.7 million bpd production cut agreed by OPEC and its allies including Russia will materialize in May.

The oil industry has been reducing output to level with demand, which has declined 30% since the pandemic. Officials from Saudi Arabia predicted that the total output cut could amount to 20 million bpd.

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?