Media ININ Economy We Trust
Abu Dhabi April 22, 2020 WAM
The contracts for US oil prices, WTI, witnessed a historical decline to reach / – $ 37.63 / barrel below zero, on the last day before the end of the US oil contracts for delivery next May.
The historical collapse in oil prices showed a surplus in production compared to demand in light of the outbreak of the emerging Corona Virus “Covid 19” and the absence of other places to store oil, which prompted traders to pay money to get rid of the barrels they have. Part of the reasons for the volatility Oil prices to the very low volume of trade in May contracts, which ended Tuesday, and although the value of futures related to May became negative, the value of those related to June is still around $ 20 a barrel.It is worth noting that there are several indicators of oil prices in the world Among the most important is the West Texas Intermediate index That is used to price American oil that is consumed in America.
While the “Brent” index is used for oil futures contracts “after two months” and the “Dated Brent” index that is delivered during the “next ten days” mainly in the European markets .. As for the “Dubai Platts” index is considered an indicator of the price of oil Currently Murban crude pricing is based on the Dubai Platts price index.
