WTI oil price rises by 160 percent
Experts do not manage to keep up with WTI oil prices, the cost of which is swinging from yesterday. The West Texas Intermediate oil price crashed to a negative price for the first time in history, closing at -US$37.63 per barrel. A few hours later, its crude went up by 160 percent to US$2.21 per barrel.
Russia’s Urals crude price fell as well. Its cost was -US$2 per barrel on Monday evening. Prospects are vague for Brent crude as well. Analysts said that oil prices will fall, dollar will rise and national currencies of oil producing countries will come under pressure. However, the situation can stabilize if industrial production resumes after coronavirus pandemic.
“Supply contracts sharply fell today, April 21, while delivery contracts in June are trading above US$20 per barrel. In my opinion, the problem of oil storage capacity should be resolved in the second half of the year, since the oil demand is expected to increase and stocks in the world will decline. This will be facilitated by an increase in industrial production worldwide. The peak of coronavirus pandemic is predicted to be passed in the second half of this year. That is why Brent crude futures for delivery in 2021 are worth more than US$40 per barrel,” said Viktor Muhomodyarov, financial analyst.