WTI Crude Oil Prices Edge Back Into Positive Territory
WTI crude oil prices have rebounded into positive territory early on Tuesday after May futures crashed below 0 for the first time on record over escalating worries about the US running out of storage space amid weakening demand for oil. At the time of writing, WTI crude oil is trading at around $21.33 per barrel.
During the previous trading session, WTI crude oil prices fell to a historic low of -$37.63 per barrel over rising fears about the coronavirus pandemic keeping demand subdued for a longer period of time, even as US oil producers struggled to cut back on supply. Although protests are continuing across the US, latest estimates suggest that it will take longer for the US economy to reopen and for oil demand to pick up anytime soon, both in the US and across the rest of the world.
Prolonged lockdowns and travel restrictions have so far reduced global oil demand by as much as 30%. Even though leading oil producers around the world have committed to curbing supply, the cuts may still not be enough to offset the steep decline in demand.
This has heightened worries of oil storage facilities nearing full capacity as crude stockpiles continue to rise, sending crude oil prices crashing lower. US’s main storage hub in Cushing, Oklahoma is expected to attain full capacity in a few weeks from now.
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