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https://www.cbc.ca/news/business/oil-price-monday-1.5538048

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The economic slowdown caused by COVID-19 is pushing oil prices down to their lowest level in more than 30 years.

The most current futures contract for West Texas Intermediate fell by $8 US a barrel on Monday, going as low as $10.10 US in a plunge of more than 40 per cent.

If that level holds until the end of the day, it will be the lowest closing price for WTI since March 1986.

The oil price is especially volatile on Monday because it's the last trading day for oil contracted to be delivered in May. Traders are scrambling to settle their positions before actual delivery of the oil gets finalized on Tuesday, at which point oil for June delivery will be the benchmark price.

The contract for oil to be delivered next month is plunging because anyone caught owning it as of the end of business on Monday will have to find a place to store the oil soon, a task that's getting harder and harder of late.

 

Ts and Ps Alberta. 

Oil didn't crater like this during the financial crisis. 

It sucks that the reason it's cratering (beyond some price war between Russia and the Saudis) is that no one can really justifying going anywhere. But Damn!!! The has made any carbon pricing strategy absolutely useless. 

Will it ever recover? 

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1 hour ago, Boges said:

Will it ever recover? 

 

Yes, it will recover when too much supply is better matched to demand.

May WTI contracts went negative today because nobody wants to take delivery of the oil.

This will continue month to month for futures until the bow wave of excess oil crests and diminishes.

Brent crude is more valuable than land-locked WTI.

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