Minus 81.45 percent year-to-date for the WTI is a major shock which will have consequences.
The crude oil contract of May 2020 dropped far below zero dollars the day before its expiration and such an unprecedented move was no guarantee however that oil prices would stay so low for long.
Considering the technical reasons behind the move which are an extreme conjunction of absence of demand and lack of storage capacity, it is likely that what took oil markets by surprise on April 20, 2020 was something exceptional enough to not happen again.
Not so fast, one should warn, because the crude oil contract of June 2020 fell by 56.13 percent from $24.76 to $10.86 since April 20, 2020 and reached a bottom at $6.50 per barrel – as of April 22, 2020 at 08:14 GMT+2.
It means that what looked first like an anomaly could become the “new normal” as long as lasts the counter-shock that stems from the coronavirus crisis and its likely huge impact on the global economy’s health.
In addition to the oil sector’s upheaval, such an unprecedented situation of negative oil price is another unknown to deal with amid an already so vast context of uncertainties; thereby building grounds for a brutal economic depression which would spill on every sector.
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