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April 20, 2020 Oil collapses in New York and closes 305% down to -37.63 dollars a barrel.The price goes below zero, for the first time in history. On an unprecedented trading day in New York, WTI crude oil futures falling due in May plummeted to zero and then fell to negative values. A collapse linked to the worsening of the crisis caused by the coronavirus, with traders who no longer want to invest in oil also due to the heavy imbalance between supply and demand due to the pandemic.
The fall was caused by a series of macroeconomic but above all technical reasons. There is certainly plenty of crude oil on the market, but the recession caused by the coronavirus has drastically reduced demand and strategic reserves are close to saturation, despite the production cut by Opec + and other G20 countries.
However, the real reason for today's record collapse lies in the swap on maturities. The May futures will be replaced tomorrow by the one with expiration in June and all operators have abandoned it in favor of the new contract which has 'limited' the drop to 16.30% to $ 20.95 a barrel, making the idea better. on the 'real' value attributed by the market to black gold. Brent also traveled more quietly, with a drop of 8.55% to $ 25.68, with a fork compared to the June WTI in line with historical values.
Wall Street closes sharply: Dj -2.46% and Nasdaq -1.03%
The weight of the collapse of the Wti on the Texan barrel weighs heavily . The Dow Jones dropped 2.46% to 23,646.60 points, the Nasdaq lost 1.03% to 8,560.73 points while the S&P 500 scored -1.80% to 2,822.89 points.