translated from Spanish: Mexican oil value falls to -2.37 dollars per barrel

The value of the Mexican mix fell on Monday to -2.37 dollars per barrel a drop of 116%.
This is amid the economic impact of the COVID-19 pandemic and an unprecedented and downward day in the value of the mix internationally.
The oil collapse reached historic levels on Monday: investors and speculators pay to find buyers as storage capacities reach their limit in the United States.
So, in a saturated market, contract holders for May – expiring Tuesday at closing – must find buyers for physical oil as soon as they can. But because reserves are almost to the limit in the United States, they must erode prices to place them.
The WTI crude barrel that was exchanged at $60 per unit at the beginning of the year and $18.27 on Friday afternoon, sank completely on Monday. And more: he finished the day at -37.63 dollars.
This means that many pay to get rid of this crude, very expensive to store.
The situation could improve in the coming days, according to some analysts.
“It’s a little misleading to focus on the May contract,” explained ClipperData expert Matt Smith. “There’s a lot more movement over the barrels for delivery in June,” he said of the contract that, still falling, keeps prices above $20.
The North Sea Brent barrel, a European benchmark and quoted in London, was less affected, falling from $9% to $25.57 at the close of Monday.
Mobility restrictions to combat coronavirus in much of the world and economic paralysis sank fuel consumption. And investors expect the situation to get worse.
In addition, the supply of crude oil is plentiful after a price war between OPEC leader Saudi Arabia and Russia, which failed to reach a production reduction agreement in early March.
The dispute ended in early April by agreeing to a reduction of 10 million barrels per day to try to sustain prices in markets affected by coronavirus.
With information from El Financiero and AFP 
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Original source in Spanish

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