In May, WTI futures contract closed down more than 300% to $- 37.63 / barrel, closing negative for the first time in history.
Facing the lowest oil price in history, President trump said he would consider purchasing 75 million barrels of crude oil for the country’s strategic reserves and “buy up” the reserves.
The sharp fall in crude oil futures prices in May means that the market is extremely pessimistic about the recent oil prices.
Reasons for the crash:
Global oil demand falling down sharply because of the novel coronavirus pneumonia epidemic wild spread. The reduction in production volume of OPEC and its allies below market expectations. The market believes that the supply and demand curve will continue to be unbalanced, which will further lead to the market’s undigested output.
The delivery date of WTI futures in May is Tuesday us time, which triggered the full selling of WTI futures in May.
Traders on Wall Street were also shocked by the sharp fall in oil prices in early trading on Monday.
Traders said: the change in oil prices is incredible! They believe it has reached the bottom!
At present, WTI June crude oil futures trading price is still above $20, and the global benchmark Brent crude oil trading price is still trading at more than $25.