US Oil Price Drops to $ 11 a Barrel

The price of oil from the United States has rushed further into the depths today. At the London stock exchange, a barrel (159 liters) of the US reference grade WTI for delivery in early afternoon in May was only 11.3 US dollars. That was a decline of more than 37 percent and the lowest level since 1998.

The reason for the fall in the oil price is the low demand for the raw material due to the coronavirus pandemic. The warehouses in the USA are also well filled. The global economy is slumping as a result of the corona virus crisis, factories are standing still, airplanes are on the ground, borders are closed. All of this is causing declining oil, petrol and diesel demand.

Large oil producers such as Russia and Saudi Arabia have announced significant cuts in production. However, experts doubt whether the reductions are sufficient to reconcile supply and demand. Another background to the price slide is the expiry of the May WTI futures contract. For comparison, in 2011 the price of oil peaked at $ 114 a barrel.

Reviewer overview

US Oil Price Drops to $ 11 a Barrel - /10

Summary

The price of oil from the United States has rushed further into the depths today. At the London stock exchange, a barrel (159 liters) of the US reference grade WTI for delivery in early afternoon in May was only 11.3 US dollars. That was a decline of more than 37 percent and the lowest level since 1998.

0 Bad!