The
negative performance of oil continued during Tuesday’s trading, after the
historic collapse in the prices of US crude for May delivery yesterday,
especially with the depletion of sufficient storage places for the barrels.
As
of 13:23 GMT, West Texas Intermediate (WTI) crude futures traded at $14.45 per barrel, while the lowest level recorded during
the session was at 11.86, noting that during yesterday’s session the lowest
level recorded was at $-40.32 per barrel.
Brent
crude extended its losses to trade lower at $24.55 a barrel, while the lowest
level recorded during the session was at $22.49.
The
drop in oil prices was the result the oversupply of crude and the near
depletion of sufficient storage space to contain the supply of crude.
The
historic collapse in the US oil price comes as oil storage capacity continues
to decline sharply as supplies are oversupplied, as demand for crude has
dropped sharply due to the outbreak of the Coved-19.
For
his part, US President Donald Trump said that the decline in US oil prices is a
short-term transient because of the current financial situation.
Trump
said at the crisis cell conference that oil prices will rise in a month to
reach between $25 and $28, and oil markets have lost more than 50 percent of
their capacity because of coronavirus.
Saudi
Arabia, Russia and Mexico are committed to reducing production by 20 million
barrels, but all factories and aircraft are suspended in 211 countries because
of the current situation, he also added.
The
outbreak of Coivd-19 has claimed more than 170,500 lives and infected more than
2,490,000 people worldwide, according to calculations by Johns Hopkins
University.
Meanwhile, the dollar
index, which measures the performance of six major currencies against the US
dollar, advanced 0.45 percent at 100.40.