Coronavirus torments US, oil price crashes below $0 a barrel
U.S has expressed an unprecedented fall in the oil price in a long time as the oil market continues to collapse under the weight of the coronavirus pandemic which causes drop in oil demands.
In what is apparently the worst level since the NYMEX opened oil future trading in 1983, United States oil future fell below $0 per barrel.
While disclosing this on Monday April 20, 2020, Stephen Innes, chief global markets strategist at AxiCorp, wrote, “It hasn’t taken long for the market to recognize that the OPEC+ deal will not, in its present form, be enough to balance oil markets.”
As the oil prices keeps falling and demands are drastically plummeting, there have been concerns as to how much oil would the United States be able to store given that West Texas International’s May future contract is expiring soon.
Last week, investors in the US were brimming with hope as they expected a potential coronavirus treatment which would necessitate reopening parts of the US economy, following Wall Street’s last week logging of its second-straight week of gains.