On the 20th at the New York Commercial Exchange, the crude oil price renewed the lowest price since 1999. In addition to the decrease in demand due to the spread of new coronavirus infection, the capacity of storage facilities has reached its limit.
West Texas Intermediate (WTI) futures, which shows US oil prices, fell 14% to $ 15.65 a barrel in the morning trading in Asia today. The May contract was an overtime transaction on the morning of 20th Japan time, which temporarily dropped to $ 14.47 per barrel.
The pandemic of the new virus has caused a great decrease in demand for oil, and the oil market is under great pressure.
US storage facilities are struggling to cope with oversupply, pushing prices further down.
Earlier this month, the Organization for Petroleum Exporting Countries (OPEC) and other countries agreed on the world’s largest production cut of 10%.
However, analysts have pointed out that the measures are insufficient.
“ It doesn’t take long for the market to realize that the deal is currently insufficient to keep the oil market balanced, ” said Stephen Innes, chief global market strategist at Australian forex trading company Axicoup. .
Consider selling CAD with falling crude oil.
Result is buying USDCAD
Stop is 1.4043