Breaking News

The Reason Behind The Historical Crash of WTI! One You May Not Thought Of

Historical crash as WTI for May delivery closed at -$37.63/bbl on 20th Apr 2020. The day begins at $17.73/bbl, and at one point hits an intraday low of -$40.32/bbl. This is the first time in history that WTI plunged into negative amid the COVID-19 situation. Historical crash as WTI for May delivery closed at -$37.63/bbl Although WTI May contract has plummeted into negative level, the Brent curve trading is still positive. And the question remains if the situation will be better or will it get worse? A global crude oversupply along with crashing demand is the not only factors that contribute to collapse. According to a research from OCBC1, the lack of storage is to be blame here. The inability to store means it matters little even if the refiner had earlier bought crude oil at a low price. Reported by Reuters – Crude oil held in sea storage hits new record at 160 million bbls2 shared that oil held in floating storage on tankers had reached at least 160 million barrels including 60 supertankers, known as very large crude carriers (VLCCs), which can each hold 2 million barrels. Will the crude oil market goes into negative again? Unless demand improves, or the US cuts its output, otherwise there are possibilities that this may happen again. Visit Marine Online, Bunkering and News for the latest bunker delivered price in global ports.  

Check Also

Hydrogen may follow as the next marine fuel after LNG and ammonia

Korea demonstrates its high ambitions in net zero fuels While hydrogen is a clean fuel, …