CORRECTION - Front-Month WTI Futures Slump Into Deep Minus on Last Day of Trade Amid Near-Full Storage

MOSCOW (Pakistan Point News / Sputnik - 21st April, 2020) The price of West Texas intermediate (WTI) crude for delivery in May fell to a negative value for the first time in history, reaching almost minus $40 per barrel at the New York Mercantile Exchange (NYMEX), as traders tried to get rid of their positions at any cost on the last day of trade amid near-full storages.

As of 18.43 GMT, the price of May futures for WTI was trading down 292.67 percent at minus $35.2 per barrel, minutes earlier falling to minus $39.55.

The price of May futures for WTI on the ICE exchange fell by 137.

71 percent to minus $6.89 per barrel.

Such unprecedented prices are explained by the fact that the contract closes on Tuesday, and there is no place to store oil. The demand has fallen sharply due to the coronavirus pandemic, and the storage facilities are already close to full, so traders are paying large sums of money to avoid the receiver's obligation to execute physical delivery.

At the same time, the price of June futures for WTI crude oil fell 16.46 percent to $20.91 per barrel, and June futures for Brent crude dropped by 8.62 percent to $25.66 per barrel.