the oil market has come unprecedented in the history of the collapse: after crude oil futures American variety WTI, collapsed into negative values (on the evening of April 20 at the Intercontinental exchange ICE it was trading at minus $55 a barrel, just fall – 300%), peak left, and Russian Urals: immediate delivery fell at the moment of writing these lines to minus $2. This means that manufacturers have to pay extra for the fact that they have to take the oil – store, its not contain. About the reasons we talked to the experts.
the players of the American commodities market in a panic — in their observations of this shock the exchange had not experienced since the mid 1930-ies, when a barrel of oil gave only 20 cents. In April 2020, the year shake-up followed — the cost of the raw materials mined in Texas, for delivery in may fell by more than 300%. Some time the “black gold” WTI was trading below $1 per barrel and then it went into negative territory: for the futures speculators now pay extra. The General reason is clear: a dramatic excess of supply over demand and overflow all storages. The specific cause of this abnormal fall, experts believe extreme stock shorting: trading platform attacking the bears.
experts believe that these games are for speculators, ordinary consumers to pay for such misadventures “black gold” is unlikely. According to the Director of the energy development Fund. Sergey pikina, the volume of raw materials sold at such a low price, are not selling the physical oil, but only exchange-traded instruments through which speculators are trying to earn money on the scandalous situation in the commodities market. “Similarly, it would be possible to sell balls ping-pong table. Speculators use the price war in the oil market between Russia and Saudi Arabia. If Moscow and Riyadh agreed on production cuts in March, that similar problems did not arise,” — said the expert.
“a Number of speculative funds in connection with the transaction OPEC+ shift their investments from short positions to long. This is reflected in the cost of a barrel. To physical price of oil drop “barrel” below the zero mark is not true. However, growth of prices of “black gold” such arguments still will not — the barrel of Brent is still unable to exceed $25 (incidentally, spot – i.e. for immediate delivery of Brent prices, unlike the may futures also turned negative – “MK”) , and Russian Urals barely crawls up to $17,” — says senior analyst “BKS the Prime Minister” Sergey Suverov.