US oil price falls below $0 a barrel

US oil price falls below $0 a barrel

The US crude crashed on Monday, falling below $0 to $-1.43 at one point, the weakest level since New York Mercantile Exchange opened oil futures trading in 1983.

According to Reuters, the US West Texas Intermediate (WTI) contract fell from $17.37, or 99 percent, to $0.15 a barrel after touching an all-time low of $2.26.

“There is little to prevent the physical market from the further acute downside path over the near term,” said Michael Tran, managing director of global energy strategy at RBC Capital Markets. “Refiners are rejecting barrels at a historic pace and with U.S. storage levels sprinting to the brim, market forces will inflict further pain until either we hit rock bottom, or COVID clears, whichever comes first, but it looks like the former.”

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