Oil prices plummeted this Monday, with futures contracts for WTI – the reference value in the United States – falling more than 50%, to the lowest level in history, as investors worry about the lack of storage sites and Data from Germany and Japan indicate a gloomy scenario for the global economy.
Brent oil fell 1.34 dollars, or 4.77%, to 26.74 dollars per barrel, at 1:52 pm (Brasília time). US oil fell $10.43, or 57.09%, to $7.84 per barrel.
Prices have been under pressure for weeks as the coronavirus pandemic destroys demand for the commodity.
Saudi Arabia and Russia even reached an agreement more than a week ago to cut oil supply by 9.7 million barrels per day, but this is unlikely to cause the global oversupply to be reduced quickly.
Brent crude values have collapsed by around 60% since the start of the year, while US crude has fallen by around 85% over the period, to levels well below the break-even point needed by many oil producers. “shale” (unconventional oil). This led to drilling halts and drastic spending cuts.
Trading at around $8 per barrel, WTI futures reached their lowest level in history. Analysts said the selloff was intensified by the impending expiration of the first month contract.
The spread between the first and second month WTI contracts was around 14 dollars, the largest in history, as the June maturity – the most active – fell around 9%, to 22.76 dollars per barrel.
Source: Notícias Agrícolas
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