Negative US oil price is not end of the world

Note that only the WTI May contract has plummeted to negative levels – prices for June onwards, as well as the entire Brent curve, are still trading firmly positive.

KUALA LUMPUR: The unprecedent plunge in West Texas Intermediate crude oil for May delivery which tumbled to zero US$, does not mean the end of the world but it does remains a risk, OCBC Bank Research says.

OCBC Bank’s global treasury research & strategy economist, Howie Lee said on Tuesday the negative prices for May are not reflective of the entire state of the market as June futures have rebounded.