WTI Oil Drops to 10 Cents a Barrel — Market Talk

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April 20, 2020
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April 21, 2020

WTI Oil Drops to 10 Cents a Barrel — Market Talk

14:04 ET – US benchmark oil prices tumble further, trading 99% lower at 10 cents a barrel as traders try to sell the front-month contract for May delivery before its expiration tomorrow. CME reportedly says it would allow for negative trading prices for the May contract. “These prices are even lower than the oil embargo, when they were about two-and-a-half dollars, ” says veteran oil trader Peter Cardillo at Spartan Capital, referring to the 1973 crisis in which OPEC imposed an embargo against the US for its decision to re-supply the Israeil military. “I think this is going to cause OPEC, and more importantly Trump, to both hit the panic button, ” that could lead to more government action in terms of production cuts or other measures.