The US oil prices dived to 34-year low at 10 US dollar after crashing more than 45% in a market flooded with crude as demand evaporates in the face of the Covid19 pandemic.
US benchmark West Texas Intermediate,WTI crude for May delivery sank to 10.01 per barrel US dollar, its lowest level since 1986. The steep decline was driven by investors closing out their positions ahead of the May contract expiry tomorrow.
Investors left holding the contracts will have to take physical delivery of the contracts as storage is quickly becoming an issue. The drop on the WTI June contract was less severe – 8.8% to 22.82 US dollar.