Agencies – New Life – Oil prices fell on Monday, amid signs of a rapid global storage capacity and the collapse of demand due to the outbreak of the Corona virus.
The losses led the US oil futures contracts, which fell more than two dollars a barrel due to fears that the storage capacity in the Oklahoma Cushing Center will reach the maximum capacity, according to Reuters.
US crude inventories rose to 518.6 million barrels in the week ending April 17, nearing an all-time record high of 535 million barrels recorded in 2017.
US West Texas Intermediate crude futures for June decreased $ 2.05, or 12.1 percent, to $ 14.89 a barrel by 0638 GMT, while Brent crude fell $ 1.08, about 5 percent, to settle at $ 20.36 a barrel, knowing that June contracts for Brent crude expire. Thursday.
And futures trading on oil losses for the third week in a row last week, and decreased in 8 of the previous nine weeks, and Brent ended the week down about 24 percent, while West Texas crude lost 7 percent.
Seventy percent of the storage capacity at Cushing Center, the US Texas West Texas crude delivery point, was filled by mid-April, while dealers say the energy available for storage is already all rented.
In light of seeking to reduce production quickly, the number of oil drilling rigs operating in the United States fell to the lowest level since July 2016, and the total number of oil and gas rigs in Canada fell to the lowest level since 2000, according to Baker Hughes data.