At 8:54 a.m. EDT on Monday, the front-month WTI Crude price was plummeting by 37.22 percent at $11.47. The Brent Crude front-month contract was also under pressure, trading down 6.02 percent at $26.39.
The U.S. oil prices are now at their lowest levels since early 1999. Analysts warn that investors and speculators have already moved to the June contract with the May contract expiring on Tuesday, but they are also cautioning that the weakness in the May contract is indicative of the shrinking storage across the U.S. threatening to be filled up within weeks.
“The expiring contract is now mostly in the hands of physical oil traders and the behavior of the contract confirms what we already feared: That the U.S. is running out of storage at Cushing, Oklahoma, the delivery hub for WTI crude oil futures traded in New York,” saidOle Hansen, Head of Commodity Strategy at Saxo Bank.
“Speculators having bought the June contract now risks that it could get pulled lower over the coming weeks towards where the May is currently trading. Only a major change in the fundamental outlook through lower production, due to producers being forced out of business or leave wells idle, or improved demand for fuel can prevent,” Hansen noted.
The new OPEC+ production cut deal is not expected to alleviate the glut in the coming weeks, as global demand is falling by 30 million bpd these days—down 30 percent from the typical consumption of oil in the world.
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| WTI Crude | -35.000 | -291.57% |
|---|---|---|
| Brent Crude | 26.21 | -6.66% |
| Natural Gas | 1.951 | +11.29% |
| Mars US •22 hours | 19.67 | -5.30% |
| Opec Basket | 17.73 | +1.26% |
17 comments:
This IS historic BUT as a trader, and I make my living off of this stuff.....
Try to follow me here,
The May futures contract is the one trading at these levels - It is EXPIRING aka - going away.There's lots of inside stuff going on here and the "NEWS" is hyping for headlined AGAIN.
The June contract is at $20 aka the "REAL" price of Crude Oil.
I KNOW this business. Check the price a few days from now
No where to go guess gas will be free soon.
So why isn't gas 50cent ? Royal farms ECT ????
501
Thanks for the comment.
It is good to hear from insiders about some of these topics.
I don't follow oil prices but do enjoy keeping up with COMEX.
There are players on COMEX who short a commodity like gold by selling contracts for which they don't have the physical commodity. This is actually legal on COMEX - but is an obvious fraud. Offering for sale a thing which one does not possess is called fraud in any legal sense of the term.
But anyway, is it possible to "short" the oil market?
Do you think it is rigged in any way?
Thank you
Hope this helps educate many of you. A big proportion of gains in US manufacturing jobs had little to nothing to do with Trump policy. The job gains were driven by oil hitting the pricemark that was favorable to US drillers and their supply chain. Those jobs are melting away. No fauly of Trump, just clearky shows the level of bs he was spoon feeding from the start
5:20 Post said; So why isn't gas 50cent ? Royal farms ECT ???
Answer: Because the State of MD/ Federal Gas taxes collects .56 cents a gallon for each gallon of gas sold . . .and that should help to put some perspective on things.
Prices at pump WAY TOO HIGH !!! 50 cents Max should be price NOW !!
Govt TAX should be Taken OFF the price too !!!
To 5:01 Poster that said; The June contract is at $20 aka the "REAL" price of Crude Oil.
My response: If the sellers of oil contracts were paying the buyers up to $37.00/ barrel (that's right I said minus $37/ barrel) I would be very skiddish to invest in June contracts at $20/ barrel.. .after witnessing what happened today. The bankrupcies will be massive in the oul industry.
5:58
In the futures (and forex) markets, "Shorting" is nothing more than the other side of the trade.
If YOU buy a contract, SOMEONE has to sell it to you.
You are LONG - he is SHORT.
It's a zero sum game - minus commisions.
Most have forgotten Md's gas tax goes up every year, silently, because of omally and every democrat that sits in Md's government. The majority of them must be voted out/removed to ever stop this theft. Hogan could do an emergency resolution to halt these taxes but he wont. He's too busy crashing the economy and already whining about no money coming to his coffers.
Actually the cheaper price per gallon means less tax revenue for the state.....meaning eventually a higher tax. Booooooo, but when state gov taxes and spends for many many O'Pally years, well.......
Tougher times are coming and that probably will hurt next summer in OC.
OC City Hall better stop figuring out what to do this year and start planning for the Spring of 2021.
Gas taxes at the pump are fixed numbers, not a percentage.....
Biggest SCAM in America Oil & Gas !!!
The Govt is in on it getting their Cut , so it Never will go down to where it
damn well Should be !!!
They could sell it for pennys a gal & make Trillions in profit !!! & WE know it !!
If it is Not @ Least to 50 cents a Gal Now in a World Crisis , say no more !!!
You are a fat, fascist asshole and I hope your business fails.
You are a fat, fascist asshole and I hope your business fails.
Many more jobs were created than just oil drilling, and fracking has been going on for many years.
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