NEW YORK (Reuters) – U.S. petroleum futures collapsed listed below $0 on Monday for the first time in history, amidst a coronavirus-induced supply glut, ending the day at a sensational minus $3763 a barrel as desperate traders paid to eliminate oil.
Brent crude, the international criteria, also plunged, but that agreement was no place near as weak due to the fact that more storage is readily available worldwide.
While U.S. oil prices are trading in negative territory for the very first time ever, it is unclear whether that will trickle down to consumers, who typically see lower oil costs equate into less expensive gas at the pump.
As billions of individuals around the world stay home to slow the spread of the novel coronavirus, physical demand for crude has actually dried up, developing a global supply glut.
Traders got away from the ending Might U.S. oil futures contract in a frenzy on Monday with no location to put the crude, but the June WTI contract settled at a much higher level of $2043 a barrel.
” Generally this would be stimulative to the economy around the world,” said John Kilduff, partner at hedge fund Again Capital LLC in New York. “It normally would benefit an additional 2%on the GDP. You’re not seeing the savings since nobody is spending on the fuels.”
The May U.S. WTI contract fell $5590, or 306%, to settle at a discount of $3763 a barrel after touching an all-tim