U.S. Crude Oil Prices Just Went Negative
Contracts for early May deliveries of West Texas Intermediate crude oil deliveries are absolutely crashing on April 20. At this writing, those contracts have gone negative. Yes, you read that right. Oil traders are now paying buyers to take U.S. futures for May delivery. At this writing, the price for those contracts is ($37.45) per barrel, meaning traders are paying that price per barrel to unload those early May deliveries. At the same time, Brent crude futures are holding up much better, down about 8% to $25.83 per barrel.
The disconnect between two of the world's most important oil benchmarks is evidence of just how massively oversupplied North America is right now. Early May U.S. crude deliveries are coming at the absolute worst time. U.S. oil storage facilities are filling up quickly, and those May deliveries of West Texas Crude may not have anywhere to go.
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Source Fool.com
