Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Spot U.S. Crude Oil Hits Near-19-Year Low in Unloved Market

CommoditiesApr 17, 2020 03:22PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Barani Krishnan 

Investing.com - White House guidelines on reopening the U.S. economy and talk on what else oil titans Saudi Arabia and Russia could do for production cuts aren’t cutting it for an U.S. oil market practically swimming in crude.

The front-month contract in West Texas Intermediate, the New York-traded benchmark for U.S. oil, plunged to as low as $17.31 per barrel Friday — marking a bottom since 2001 — as it headed for delivery. The contract settled at $18.27, down 8% on the day and 18.5% on the week.

June WTI, next in line to be the spot contract, settled at $25.03 — a near $7 disparity to May WTI due to the woeful prompt demand for prompt delivery crude. 

Despite a near-10-million-barrels-per-day production cut agreed on Sunday by OPEC and other world oil producers, crude prices have continued to sink on concerns that actual loss of demand to the Covid-19 pandemic could be as high as 30 million bpd. 

“May crude oil is up for delivery as OPEC plus cuts have yet to start, and production drops are not coming fast enough with a glut of oil,” said Phil Flynn, analyst at the Price Futures Group in Chicago. “However, if you look down the curve, prices are looking better.”

June WTI could also get a bump-up in the coming week after the oil rig count published by industry firm Baker Hughes showed a drop of 66 rigs this week and 245 over the past four weeks. The rig plunge indicated production cuts undertaken by U.S. oil drillers due to WTI’s freefall. 

Brent, the London-traded global benchmark for crude, performed better than US crude on Friday, though only relatively. Brent’s front-month, which has already moved to June, settled at $28.08 per barrel, up almost 1% on the day. For the week, however, it was down 11.5%.

The White House unveiled late on Thursday guidelines that governors of the 50 U.S. states could use in reopening businesses locked down for four weeks now in an attempt to control the Covid-19 outbreak that has infected more than 670,000 Americans and killed nearly 34,000 of them.

Saudi Arabia and Russia, meanwhile, were ready to do more to help stabilize the global oil markets. Alexander Novak and Abdulaziz bin Salman, energy ministers for Riyadh and Moscow, said in a joint statement that they will "continue to closely monitor the oil market and are prepared to take further measures jointly with OPEC+ and other producers if these are deemed necessary”.

 

 

Spot U.S. Crude Oil Hits Near-19-Year Low in Unloved Market
 

Related Articles

Not gone yet: Merkel to hang on as active caretaker
Not gone yet: Merkel to hang on as active caretaker By Reuters - Sep 17, 2021

By Andreas Rinke BERLIN (Reuters) - After 16 years in power, Chancellor Angela Merkel is not seeking re-election in Germany's Sept. 26 election but she is anything but a lame...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (8)
Roberto Graziani
Roberto Graziani Apr 19, 2020 11:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Oil will go up as the world economy will open up again. In time
Charles Kao
ckao Apr 17, 2020 7:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Could this a recourse of  "US First" policy ?
Idar Polden
Idar Polden Apr 17, 2020 6:37PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The White House do not control Brent!
arno nabuurs
arno nabuurs Apr 17, 2020 4:05PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why does all main stream keep hammering on "the corona crisis"? This economic crisis exists because we do not let big corporates fail since 2008..... And keep printing fiat to prop them up because they cannot keep their own pants up and the bailouts where used to buy back stock. That's the real crisis you muppeds🤷‍♂️
Idar Polden
Idar Polden Apr 17, 2020 4:05PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
u are intelligent.
Dwayne Smith
Dwayne Smith Apr 17, 2020 3:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thoughts on long term longs on USOIL?
Robert Lawrence
Robert Lawrence Apr 17, 2020 3:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
fairly low risk on low side and large upside potential into 2021 and further
Idar Polden
Idar Polden Apr 17, 2020 3:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
that will backfire ones the lockdown starts to be lifted!
Christopher Frey
Christopher Frey Apr 17, 2020 3:53PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it just rolls the front month contract. Contango will *****you long term
Dan Hodel
Dan Hodel Apr 17, 2020 2:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
As being new to trading, whats the best way to play oil?
Show previous replies (1)
Dan Hodel
Dan Hodel Apr 17, 2020 2:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Jesus Que Thank you.
akodiya naveen
akodiya naveen Apr 17, 2020 2:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yes
Eduardo Salido
Eduardo Salido Apr 17, 2020 2:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
DIG
Dick Wood
Dick Wood Apr 17, 2020 2:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
uso out to Oct
Damir Jandricek
Damir Jandricek Apr 17, 2020 2:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
buy now hold till Oct?
Ashish Ranjan Dutta
Ashish Ranjan Dutta Apr 17, 2020 2:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It will remain volatile and may move further down , simply because there is far less demand for oil than the supply cut could equalize.....
WaJahat RaJput
WaJahat RaJput Apr 17, 2020 2:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
For how long this will remain like this
Zero Coolest
ZeroCoolest Apr 17, 2020 2:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
think people will plan on traveling a lot this summer? manufacture a bunch of goods for them to buy while they are? who knows... At times I feel like we are standing on the edge of a cliff.
Thom Miller
Thom Miller Apr 17, 2020 2:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Explain to me again why Donny Boy was taking a victory lap and pounding his chest for brokering the “best deal in the history of the oil industry.” Odd, because he said US oil prices would benefit from the increase “very strongly” as a result. WTI is now down -33% since the “agreement” was reached. One ********of a negotiator, Donny Boy!
Show previous replies (3)
Stephen Cassar
Stephen Cassar Apr 17, 2020 2:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Barani Krishnan  useless priorities cause january 2021 he would not be at the white house any more, ( he is the real virus )
Jo Riley
Jo Riley Apr 17, 2020 2:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Barani Krishnan  Low oil prices are good but not a collapse - big difference.
Jo Riley
Jo Riley Apr 17, 2020 2:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thom Miller  Trump has repeatedly said it's tragic that people have died - I guess you don't listen much to what he says.  And amid lots of bad news, is it a crime to mention good news? - like cheap gas prices?  Please.
perplexed76 .
perplexed76 . Apr 17, 2020 2:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You have to specify what donny boy you mean. Another donny boy said that he's happy to see cheap oil and gasoil.
Michael Redden
Michael Redden Apr 17, 2020 2:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yea lets just raise the price of oil in a money crunching crisis. Id say donny did just fine
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email