Prices of US crude oil for future contracts continue to incur severe losses in the international markets on Monday. Prices recorded the largest decline in 34 years since 1986.
The price of a barrel of US oil, “WTI”, fell by about 45%, to date, to $ 10.06. That is the lowest level since April 1986.
Earlier in the day, US crude fell to $ 11.31, down nearly 40%, and this decline is the largest since 1998. While oil from the European “Brent” mix fell by 6.1% and fell to the level of $ 26.38 per barrel.
The drop in oil prices is due to the decline in global demand due to the repercussions of the Coronavirus pandemic. The retreat in demand is coinciding with the increase in US crude stocks.
On the other hand, international oil prices recorded their lowest levels in the first trading sessions of the week on Monday.
The wave of losses continue to extend since the sessions of last week due to growing concerns about the depletion of the storage places for crude produced in the United States, after the agreement to reduce production to the “OPEC +” coalition proved ineffective in compensation Loss of oil demand collapse.
The price of US crude futures for May delivery fell 16% to trade at the lowest level of $ 15.27 a barrel, after tumbling to $ 14.47 a barrel at the beginning of the session, recording the lowest level since March of 1999, while the price of futures contracts for June delivery fell by about 5.9% at $ 23.75 a barrel.
The price of Brent crude for June delivery fell by 0.9% to $ 27.84 a barrel, after losing nearly 11% of its value last week.
Experts attribute the causes of the collapse of US crude prices in this way to the investors’ fears that the crude storage centers in Oklahoma State of America may soon deplete their storage capacity to the extent that American producers are obliged to pay money to customers in return for purchasing crude to reduce the oversupply and provide storage sites.