This might be why there is a steeper fall within the Might futures contract in comparison with the June contract. Spot costs are “particularly weak” in the meanwhile, Hynes stated, including that spot U.S. crude is buying and selling for as low as $12-13 per barrel. This was attributable to a mixture of a “collapse in demand and a subsequent lack of storage,” he stated.

In a traditional market, the unfold between the spot worth and the one month ahead futures contract “may only be around 40-50 cents per (barrel),” he stated. “At the moment, it’s been as high as $8-10 (per barrel).”

Hynes stated that costs are prone to “remain under pressure” over the following month or so.