The price of US oil, WTI, rose again above zero on Tuesday, April 21, 2020, after falling to zero for the first time, due to lower demand on global energy markets, where demand fell by about a third, in addition to closings to limit the spread of the Covid-19 virus.
WTI was $1.43 a barrel in afternoon trading in Asia after the session started at -14 dollars, which meant that producers were paying buyers to take out the oil. And later on Monday, April 20, 2020, producers were paying more than $40 a barrel to get rid of it.
Whereas, the price of a barrel of WTI crude oil on Friday was $18.27. If the global storage crisis worsens quickly, Brent crude could catch WTI down, according to Citi analysts, adding that WTI crude volatility is expected to continue due to the difficulty in storing US oil, according to Financial Times.
Tuesday, April 21, 2020 is the final day of trading for WTI futures contracts for delivery in May, and June delivery contracts rose 4.9% to $21.43 in Asian trading, with hopes that a slump in demand could improve by then, if closures and travel bans are eased, While traders warn that the June contract will come under further pressure.