Breaking: WTI June oil contract plummets below $12

Yohay Elam FXStreet

The June West Texas Intermediate oil contract has collapsed below $15.The crash comes one day after the May contract collapsed below zero and hit a low of around -$40.

Update: Oil has continued its free-fall and is trading below $12 in a fast move before bouncing to closer to $15. Volatility is high. The daily range at the time of writing has been $11.55 to $22.55.

Coronavirus lockdowns have dwindled demand for petrol and storage is filling up. The OPEC+ agreement to reduce around 10 million barrels per day in oil output has been insufficient to stop the rout.

The chart below is showing Monday's crumbling down of the May contract, the resumption of WTI trade with the June contract above $20 and the consequent fall.

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

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