May US crude futures plunged to a depth never before seen, settling on the day at minus $37.63 a barrel, a decline of about 305 percent, or $55.90 a barrel. crudeoil OilPrices busrep
NEW YORK – Traders fled from the expiring May US oil futures contract in a frenzy on Monday, sending the contract into negative territory for the first time in history, as barely any buyers are willing to take delivery of oil barrels because there is no place to put the crude.
“The people who are long are desperate to get out,” said Phil Verleger, a veteran oil economist and independent consultant. “If you don’t have storage you have to get out.” “For many investors or people using these contracts for hedging this is really a big pain,” said Edward Moya, market analyst at OANDA in New York. “There’s no place to put it - we’re running out of space to store oil.”
“It’s clear that Cushing is going to fill and it will stay full for the next several months,” said Andy Lipow of Lipow Oil Associates. “Because producers have been lagging in their production cuts we’re seeing an overwhelming amount of crude oil looking for a place to go around the world.”
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