US crude at minus $40/bbl – covid has someone ready to pay you to buy their oil

NEW DELHI: The world, humbled by the covid-19 pandemic, had one more shock to absorb on Monday. May futures of West Texas Intermediate, the US crude, was trading over 310% lower from their previous day’s prices at minus $40 per barrel on New York Mercantile Exchange. Put simply, crude oil sellers were willing to pay you to buy their fuel as they run out of storage capacity.

A market expert blamed the sharp fall in WTI prices to some traders closing their May contracts ahead of schedule to rebuild their June contracts.

The unimaginable scenario dawned as crude oil traders prematurely dumped May contracts, a day ahead of the expiry.