June oil futures contract drops more than 40% as crude continues unprecedented sell-off
West Texas Intermediate crude futures for May delivery pared losses to trade in positive territory 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 contract and therefore a better indication of how Wall Street views the price of oil, slipped 43.37% to settle at $11.57 per barrel. Earlier it fell more than 60% to trade under $7 per barrel. The contract for July delivery fell roughly 31% to $18.04.
The May contract settled at $10.01 per barrel after trading in negative territory earlier in the session, …continued .
[Source: CNBC News]