Oil Prices Crater By 90% After Trump’s Heralded Deal

Markets Insider reports:

Oil plunged to a more than three-decade low on Monday. The commodity’s latest round of sharp selling comes as uncertainty mounts around storage for excess oil. Demand for crude has plummeted since the coronavirus outbreak has frozen activity worldwide.

The price of West Texas Intermediate crude oil futures expiring in May plunged as much as 84% to $2.99 a barrel, putting itpace for the lowest close on record, dating back to 1983. Brent crude losses were muted by comparison, with the commodity sliding 7.4% to $26 a barrel at intrasession lows.

OilPrice.com reports:

The highest number of Saudi oil shipments in years are making their way to the United States this month, threatening to make an already dire situation in the U.S. oil industry even worse.

With oil demand crashing in the lockdown and storage capacity filling up fast, more Saudi oil imports is the last thing the U.S. oil market needs right now.

In times of lockdowns and social distancing, inventories in the U.S. are soaring, storage capacity is stretching thin in many areas, producers are idling rigs and curtailing production, and some regional grades are priced so low that they could soon turn negative.