Due to the low demand for oil in the US some manufacturers began to pay for pumping from storage.
Price minus 19 cents per barrel was recorded for oil Wyoming Asphalt Sour. For this price, the company Mercuria Energy Group Ltd started offering its customers for each barrel removed from the repositories.
Wyoming Asphalt Sour – sulfur oil produced in Wyoming. This brand used for the production of bitumen and asphalt, but due to high sulfur content, it is difficult to process, which affect its value.
“This oil has no outlet to the sea, so it has no buyers. In places where storage is quickly filled, prices can go negative,” – said the analyst of consulting company ESAI Energy Elizabeth Murphy.
Oil traders admit that soon with a similar problem may be faced by other producers in the U.S., as refineries cut production, says the publication.
In North America several grades of oil, such as Western Canadian Select, and Oklahoma Sour fell to 4.6 dollars of 6.75 dollars per barrel respectively.
On March 27, the price of WTI oil futures for delivery in may declined by 3.36%, to 21.84 per barrel. Brent crude for may delivery fell by 4.86%, to the level of 25.06 dollars per barrel.
Recommend to read: the Beginning of the global crisis? What is behind the collapse of stock markets, currencies and oil