As storage tanks fill up, oil markets have a timing problem. For more than a century, oil has been among the world's most vital commodities. On April 20th it became less than worthless. The price of the May futures contract for West Texas Intermediate (WTI) crude plunged to the hitherto unfathomable level of -$40. The price of Brent crude, the international benchmark, sank too, before both seemed to recover, with the front-month contracts settling at $13.78 for WTI and $20.37 for Brent on April 22nd. But oil markets still have a timing problem.
This article was originally published by The Economist on the 25 April 2020.
Read the full article: https://www.economist.com/finance-and-economics/2020/04/25/oil-markets-have-a-timing-problem