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.