(Omaha) U.S. oil prices plunged to historic lows in the May contract on Monday finishing at minus $37.63 per barrel.
Chad Hart Associate Professor of Economics at Iowa State University says the May contract for crude oil closes out tomorrow, and delivery is happening now. “The problem is there’s a large supply of oil due to the lack of travel,” said Hart. “The other issue pressuring the market was the report of an increase in positive COVID-19 cases over the weekend. This led to speculation that it may take more time than first thought, to re-open the economy and stimulate oil usage.”
Hart says the rest of the market is much more stable and holding at positive prices, and near the range, we’ve seen over the last couple of weeks. The June, July, August, and September oil contracts are holding prices at $20, $25, and $30 per barrel.
