Article length: 967 words

Megadeal fails to put the brakes on oil’s rollercoaster ride

The collapse of a US benchmark futures contract for West Texas Intermediate (WTI) to minus $37.63 a barrel ($/bbl) on 20 April made for great headlines, as markets digested the first ever negative oil price (the previous historic low was $0.10/bbl in 1931). The fall into unprecedented territory on the last day before the latest WTI contract ended was a quirk of the futures market, as producers and traders reacted to the febrile coronavirus economy in which demand has slumped and storage space is used up.

Go to full article

Credit value: 12

African Energy Gulf States Newsletter