LONDON (Reuters) – Oil costs fell on Monday, with a U.S. crude futures contract striking its most affordable level given that 1998, as concerns that U.S. crude storage will soon be complete and bleak financial data struck belief.
Brent LCOc1 was down $1.62, or 5.8%, at $2646 a barrel by 1211 GMT, while the front-month May WTI contract CLc1 fell $6.22, or 34%, to $1205
At one point, the contract hit a low of $1104 a barrel, the most affordable given that1998 Analysts stated the sell-off was exaggerated by the agreement’s imminent expiration.
” The May agreement is set to expire tomorrow and the bulk of the open interest and volume is already in the June contract,” stated ING’s head of products technique, Warren Patterson.
The spread in between front-month agreement and 2nd month was more than $10, the largest in history, as the June contract CLc2, which is more actively traded, fell $2.63, or 10.5%, to