The price of a barrel of US oil for May delivery in Asian trading, on Tuesday morning, jumped to above zero after it closed in New York at an unprecedented price in history, reaching $ 37.63 below zero per barrel, meaning that dealers paid buyers to rid them of a commodity that overflowed their tanks and scarcely demanded for them Because of the Covid-19 epidemic.
At the start of trading, the price of West Texas Intermediate crude for May delivery reached 0.56 cents a barrel, knowing that the May future contracts expire on Tuesday.
The price of US oil listed on the New York Stock Exchange for the first time in history collapsed to below zero at the end of Monday's trading session due to a stock glut that forced investors to pay out of their pockets in order to dispose of this commodity.
As the May contract deadline expires on Tuesday, dealers have to find buyers as soon as possible.
But with storage facilities in the United States overwhelmingly massive in recent weeks, dealers have been forced to pay to get buyers, which has caused WTI crude price to close at $ 37.63 below zero.
This unprecedented deterioration came as a result of the repercussions of the emerging Corona virus, which destroyed the global economy by forcing billions of people to stay with their homes to stop the outbreak and by a price war between Russia and Saudi Arabia.
The price war led to a glut in US reserves, which negatively affected shale oil producers in the United States.
OPEC announced last week to reach an agreement between the organization and its partners to reduce production by about ten million barrels per day as of May, but that was not enough.
For his part, US President Donald Trump announced that the United States will take advantage of the historic collapse in crude prices to purchase 75 million barrels to fill its strategic oil reserves.
"We are filling up our national oil reserves. You know the strategic reserves. We are looking forward to placing up to 75 million barrels in the same reserves," Trump said during his daily White House press conference on the developments of the Covid-19 epidemic.
Black gold prices collapsed on Monday, to the point that the price of some American crude drums fell below zero, which means that dealers pushed their pockets to dispose of this commodity.
On March 13, Trump announced his intention to fill the strategic reserve stock to the maximum