Oil futures saw further pain on Tuesday, with the most-active June contract for the U.S. benchmark poised for its lowest finish in 21 years, a day after the May contract made history by settling in negative territory for the first time ever.
A glut of oil and dwindling places to store the commodity has combined to obliterate crude values.
West Texas Intermediate crude for June delivery CLM20, -28.34% was down $5.31, or 26%, at $15.12 a barrel on the New York Mercantile Exchange, after touching a low at $11.60. Based on the most-active contracts, prices were poised to settle around their lowest since 1999, according to FactSet data.
The June contract posted a fall of over 18% on Monday, when “trading volumes for the June contract were five times higher than the soon-to-expire May contract,†according to IHS Markit.
https://www.marketwatch.com/story/us-oils-june-contract-tumbles-25-to-around-21-year-low-as-expiring-may-contract-hangs-below-0-a-barrel-2020-04-21-------------
The May contract did finally go positive, albeit on small volume. Guessing some players 'found' some storage after all.
Meanwhile, June is trading around $14.50/bbl at this moment and RBOB Gasoline futures are down $.11.
Looks like gas prices are going to party like it's 1999.
