It was a rough Monday for the oil industry, particularly in the United States, as the price of West Texas Intermediate (WTI) crude oil futures expiring in May 2020 plunged by over 300% to negative US$37.63 per barrel by the close of the oil market, the lowest level ever recorded.
Meanwhile, Brent crude oil prices, which is what most oil-producing countries use as a benchmark, declined by a significantly lesser margin of 8.9% to US$25.57 per barrel. The declines come in light of the Covid-19 pandemic that has shattered demand for crude worldwide.
Recently, OPEC+, which consists of OPEC, along with Russia and other oil-producing nations, agreed to slash global crude oil output by 9.7 million barrels per day from May but it appears this has done little to drive up prices.
In the United States, the accelerated decline in the price of WTI crude was due to technical reasons, as the May delivery contract was set to expire on Tuesday, April 21, 2020, the last day oil producers can trade barrels that are scheduled for delivery next month (May), at a time when oil storage for WTI crude is expected to reach its limit.
The negative price of May WTI crude futures means there are very few buyers for the commodity and (by technicality) producers would pay traders to take the oil off their hands. However, this situation isn’t reflected in June WTI crude futures, which will become the default WTI oil price from today – currently settling at above US$20 per barrel on Monday.
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Can we see RON95 at 20 sen then?
Petrol dealers need to pay us to fill their petrol.
Janji dicapati. RM0.00 seliter
Yeah, even RON 97 will also come down to less than 50 sen
Ok let’s buy Aston Martin Rapide sedan V12 full loan 9 years.
Come to think if it,PDAm members should have migrated to sanitisers,masks,gloves business ..sure untung business cos of recurring haze,population growth and need for hygiene products.
But now…it is a downhill spiral of worry and massive debts for the petroleum business.
RON97 same price as a bottle of mineral water soon.
In the first place, water is overpriced.
When will cooking gas price comes down?
This is scary stuff. I cannot believe that I will be feeling sad instead of happy when the oil price at pump went cheap.
Removing GST and replacing it with SST was a not a smart move. We went from an economy not depending on oil commodity to one that will be severely impacted by it. Good riddance to PH for politicking GST. They surely do not have the know how to be a good goverment.
HELLO Your Excellency Mr. Gabriel,there is a country called Bolehland,where the
health minister said,drinking warm water will take care of the rampaging virus.Is this better than PH ?
Rilek bang..jom makan (Doraemon voice mode)
Come on la, everyone back then hated the GST whether they like PH or not. They politicked it, but we bought it.
I failed to understand why changing tax structure made us shifted to “dependent on oil commodity”?
When GST was around, trading oil is still no.1 national income with palm plantation at no.2 right? Is palm plantation has gone dead along with GST now?
US Treasury should starts depreciation of dollar value by 50% so Brent oil will appreciate to US$50/barrel.
i can almost hear the faint cry for help from PDAM…
PDAM is just small fry, and isnt only them crying. There are other billion dollar companies around the world rugi. Air Asia pun rugi becoz they bought Av gas earlier….and now AV gas price drops even more….
apalagi… RON100 or VP ??? hahaha
Hanya Covid-19 je blh turunkan harga minyak…
See this news everywhere, but one thing I cannot understand is, how can a price of something is negative?
Imagine you bought lots of toilet paper, and your house has no more room. The toilet paper keeps on coming in because you ordered a lot many months ago, but now you can’t use it all up, and neither your neighbours. It’s time to offer someone money to get rid of your toilet paper.
US & Europe is still struggling with the virus. Worldwide aviation industries will have to wait long before people have the confidence to go travelling again. If that’s the case, by the time Malaysia recovered, the oil price should remain cheap still. Rejoice, I’d daily drive a 5.7L V8 SUV.