U.S. crude prices plunged on Monday as traders continue to fret over a slump in demand due to the coronavirus pandemic. The price of the nearest oil futures contract, which expires Tuesday, was the hardest hit, detaching from later month futures contracts with a drop of more than 20%.
West Texas Intermediate crude futures tanked 26% to $13.39 per barrel. Meanwhile, international benchmark Brent crude futures edged 3.38% lower to $27.12 per barrel. The June WTI contract, which expires on May 19, fell more than 8% to $22.91 per barrel. The July contract was off by 5% to about $28.
The front part of the oil futures 'curve,' which is the May contract that expires on Tuesday, was hit the hardest since it applies to fuel that's set to be delivered while most of the country remains on lockdown thanks to the coronavirus. There’s little demand for gasoline from refineries, and storage tanks in the U.S. are nearing their limits.
Source : CNBC