WTI Oil Price Has Fallen To Its Lowest Level Since 1999
The price of US WTI crude oil on the ICE exchange in London fell by more than 20%, breaking through the $15 per barrel mark and reaching its lowest level for the first time since 1999, according to trading data.
The price of WTI crude oil futures for delivery in may 2020 fell by 21.8% to $15 per barrel during trading on the ICE exchange in London. Earlier in the course of trading, the price of this type of oil fell by more than 23% - below the $15 mark.
According to analysts, the fall in the price of WTI oil is due to the continued accumulation of oil against the background of reduced demand due to the spread of coronavirus infection in the world. In particular, raw materials stocks are growing in the oil storage facility in Cushing, Oklahoma, which is the delivery base for WTI crude oil futures contracts.
"It (the oil storage facility in Cushing) has not reached its maximum capacity, but there is concern that it will," said CMC Markets chief market strategist and analyst Michael McCarthy, quoted by Reuters. The analyst added that as soon as maximum capacity is reached, manufacturers will have to reduce production.
The volume of oil stored in floating storage tanks is currently estimated at a record 160 million barrels.