CFTC Is Investigating The Situation With The Fall In The Price Of WTI Oil To Negative Values
The US Commodity Futures Trading Commission (CFTC) is conducting an audit in connection with the fall in WTI oil prices to negative values earlier this week. This was reported on Friday by Reuters.
On April 20, the price of Texas light oil (WTI) reached negative values for the first time on the new York Mercantile exchange in light of concerns about a possible lack of storage space. The price of energy supplies fell to minus $40 in May. However, the cost of deliveries in June fluctuated at about $20 per barrel.
"We need to understand why these prices were set at that time. In a situation like this, we are looking at all possible explanations, but in this case, we are looking [at what happened] particularly closely due to extreme price movements," CFTC Commissioner Dan Berkowitz told Reuters. According to him, the Commission will consider "whether there were violations of the law on the commodity exchange that could have contributed" to the price falling to negative values.
Reuters notes that investigations of such events in the market can take years.