US crude prices are recovering after falling to $0.00 for the first time due to falling demand and rising reserves, while Asian stock markets have also been hit hard by the decline.
Foreign news agency AFP reports that unconventional negatives for West Texas Intermediate delivery in May fell by $ 37.63 for 1.10 a barrel in May, due to the Coronavirus stopping work in the global economy, transport, and factories.
The reason for the price fluctuations is the expiration of contracts, which means that traders have to find buyers again which has become very difficult and the traders have increased storage.
However, the focus is now on the June contract, which has more than 30 times its trading volume, which rose to $ 21.4 a barrel from $ 20.43 a barrel on Monday
Oil prices rose to $ 25.75 a barrel in June for international benchmark Brent Crude.
JP Morgan Asset Management's Tai Hai says the crisis in West Texas came at a time when demand for the US lockdown of the market continued to rise in May.
"It is not surprising, flights are not running, people are running low on cars, we will see more pressure on it if the economy reopens soon after optimism," he said.
He said that companies are still producing oil because reducing production is not possible for some products as it can completely destroy their oil wells, they can tolerate producing oil for a month but it Not to do closed. '
Last month, oil prices plummeted as Saudi Arabia, a key member of the Organization of the Petroleum Exporting Countries (OPEC), launched a price war against non-OPEC member Russia.
Earlier this month, Riyadh and Moscow agreed to reduce oil production to 10 million barrels per day, ending the dispute.
However, oil prices continue to fall, which analysts say is not enough to offset the massive drop in demand caused by the virus.
The U.S. Energy Information Administration says crude oil storage in the world's largest economy increased to 19,250,000 barrels last week.