The collapse follows a historic rout on Monday when US oil for May delivery traded at negative prices, the combination of demand evaporated due to the pandemic, oversupply and a shortage. Storage criticism for excess barrels has seen traders effectively paying people to get American crude out of their hands.
Brent crude fell to $ 15.98 a barrel before stabilizing around $ 17.30, down more than 10%.
The market is worried about the lack of oil poles to store barrels that nobody wants, because the coronavirus pandemic is making demand for crude disappear. While Saudi Arabia and Russia recently reached an agreement with other members of the OPEC + alliance to reduce supply from May 1 by a record amount, it did little to allay fears.
“Oil futures prices are expected to recover once demand for the physical product increases, but that will appear in a few months,” wrote Jasper Lawler, research manager at the London Capital Group.
“Panic spreads not only among oil traders, but also within OPEC +, prompting him to hold an emergency conference call yesterday, although no new strategic consensus has yet been reached. been achieved, “wrote Eugen Weinberg, Commerzbank commodity research manager, in a note. to customers on Wednesday.
Subscriber earnings were fueled in part by home orders for coronavirus and popular Netflix releases such as the reality series “Love is Blind” and the documentary series “Tiger King”.
– Julia Horowitz, Anneken Tappe and Frank Pallotta contributed to this report.