The US crude, also known as West Texas Intermediate(WTI), traded for below $0 following the impact of the coronavirus on the global oil market.
This is however the first time in the history of US crude trading , that WTI is trading in a negative territory.
An oil expert working with the Abu Dhabi -based oil service company, Baker Hughes, Prince Ifeanyichukwu, who spoke to THEWHISTLER on Monday explained why the prices plunged that low.
He said. ” It’s the May WTI contract at Cushing that is trading at those prices as the oil there is already in storage.”
He further explained that the owners of the oil had their rental contracts until May and they could not prolong them because someone else took the space (Cushing).
SOURCE: The Whistler
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