Action in physical markets can serve as a precursor to what happens in futures. West Texas Intermediate crude (WTI) at Midland , the United States' flagship crude oil grade priced in the heart of the Permian Basin, plunged on Monday to trade at about US$10 a barrel, its weakest since late 1998, as demand plummeted and tanks filled quickly. It traded as low as $9.75 below the U.S. benchmark, which settled near $20 a barrel on Monday.
LONDON/NEW YORK: Physical crude prices slumped worldwide on Monday, falling faster than comparable benchmark futures as merchants offered big discounts on shipments and the market braced for a flood of oil from Saudi Arabia and Russia.
Key markets where producers and refiners trade oil were showing weak pricing for shipments not due to arrive until May, a signal that even as both U.S. and Brent crude benchmarks have slumped to the low $20s this month, the market may fall further.
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