TURMOIL: The day crude hit below $0 for first time in history

Dubai - The crash was driven by a glut of oil, shortage of storage facilities and massive 29 million barrels per day drop in demand.

US crude oil May futures crashed into the negative territory for the first time in history on Monday, falling 305 per cent, or $55.90 a barrel, to minus $37.63 a barrel.
Falling fast and furious on Monday, the crash was driven by a glut of oil, shortage of storage facilities and massive 29 million barrels per day drop in demand. It was a 'Black Monday' when there were only sellers and no takers of the US crude.
Traders rushed to find storage on land and at sea in what is believed to be the biggest oil glut in history, which had pushed May futures earlier to a low of negative $40.32.
"It's a dump at all cost as no one wants delivery of oil," said Stephen Innes, chief global market strategist at AxXI Trader.
Oil tanks around the world are filling fast, despite a 50 to 100 per cent jump in lease costs, as oil companies and traders scramble to park unwanted crude and refined products. Millions of barrels are struggling to find buyers among industrial users and refiners, which have cut operations as the impact of the coronavirus has destroyed demand and a Saudi-Russia market share battle has led to a flood of supply.
As compared to US WTI, London's Brent was more stable at $25.62 per barrel at 11pm on Monday night, down by just 7.8 per cent or $2.2 a barrel.
-waheedabbas@khaleejtimes.com