Oil plummets to disasterous record low
Price Futures Group senior account executive Phil Flynn says he’s never seen a day like this for oil prices in his career. FOX Business’ Lauren Simonetti says after two strong weeks on the market, oil dragged down the major averages.
Get all the latest news on coronavirus and more delivered daily. to your inbox. Sign up here US equity futures are indicating a lower open on Wall Street when trading begins on Tuesday.
The major futures markets are pointing to a decline of 0.8 percent.
US crude is trading lower. The May contract which plunged on Monday, is down $ 1. , trimming Monday’s decline by $ . From the closing price of – $ . . It was at roughly $ 73 at the start of the year.
The June contract is down 5 percent to below $ 36.
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On Monday, US oil futures plunged below zero with storage for crude nearly full as demand collapses due to the coronavirus pandemic.
Traders are still paying more than $ for a barrel of US oil to be delivered in June, which analysts consider to be closer to the “true” price of oil. Crude to be delivered next month, meanwhile, faces a stark problem: traders are running out of places to keep it, as factories, automobiles and airplanes sit idled around the world.
Few traders are buying and selling US oil to be delivered in May. When trading contracts for it expire on Tuesday, the earliest delivery they’ll be able to buy is for June.
Brent crude, the standard for international oil pricing, is down $ 3. 60 to $ . .
In Asian markets on Tuesday, Tokyo’s Nikkei. 1.9 percent, the Hang Seng index in Hong Kong lost 2.2 percent and China’s Shanghai Composite gave up 0.9 percent.
In Europe, London’s FTSE gave up 1.6 percent, Germany’s DAX fell 2 percent and France’s CAC declined 2.1 percent.
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