WTI Crude Oil futures for May delivery slipped to $10.93 per barrel on April 20 on fear of rapidly filling global storage facilities caused by the novel coronavirus pandemic. The fear in the market is that US storage facility will run out of space by mid-May.
West Texas Intermediate (WTI) crude contact for May fell 40.18 percent to $10.93 per barrel in New York. The May contract is set to expire on April 21. The June contract was trading down 11.03 percent to $22.27 per barrel.
“NYMEX crude May contract has slipped below $11/bbl for the first time since March 1999. June contract is down 7 percent near $23/bbl and is still holding above the lows set earlier in the day. The sell-off in near month contract is largely because of position squaring ahead of expiry .There are huge stocks in US storage and this has pressurised near month prices,” said Ravindra Rao, VP- Head of Commodity Research at Kotak Securities.
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