WTI turns negative, world stares at recession
NEW DELHI : With US crude oil prices turning negative, the world is looking at a full-blown recession.
In a perfect storm, West Texas Intermediate (WTI) fell to as low as minus $37.63 per barrel on Monday due to a combination of factors such as demand erosion due to the coronavirus pandemic, the US running out of storage space, and a technicality wherein May futures contracts are set to expire today.
After WTI prices turned negative, in a first, it was trading at $1.74 a barrel on Tuesday. While WTI’ futures contract prices for June delivery was also down, it was trading at around $20 per barrel.
