Oil continues unprecedented sell-off: June futures drop 20%, May contract still has a negative price
- West Texas Intermediate crude futures for May delivery reversed gains to trade in negative territory again on Tuesday, one day after plunging below zero for the first time in history. The contract expires today, which means that thin trading volume has contributed to the wild price action.
- The massive selling gripping the oil market is now spreading to more futures contracts, worrying investors about the deep economic damage being done by the coronavirus shutdowns.
- The contract for June delivery, which is the more actively traded and therefore a better indication of how Wall Street views the price of oil, slipped more than 20% to $16.24 per barrel. Earlier in the session it had dipped below $15. The contract for July delivery fell roughly 11% to $23.42.