US oil prices are on their way for their worst day ever

On Monday U.S. oil prices were on track for their worst day on record as a result of the crude storage facilities filling fast amidst the ongoing coronavirus pandemic continues to heavily impact the demand.

As reported by CNBC, the May contract of U.S. West Texas Intermediate (WTI) futures dropped to $10.52 per barrel on Monday, down 42%. Earlier in the day it marked its lowest level since at least April 1986 by hitting $10.01.

The international benchmark Brent crude remained at $26.53 on Monday, going down by 5.5% for the session.

“The current forward crude oil curves for Brent and WTI are now in very deep contango, but the contango is also very front-loaded,” Bjarne Schieldrop, chief commodities analyst at SEB, told CNBC via email.

“The curves are saying we have a big problem with the storage of oil right now,” Schieldrop added.

Earlier this month, analysts at Goldman Sachs gave a warning by stating that the coronavirus impact was “extremely negative for oil prices and is sending landlocked crude prices into negative territory.”

(Reference: CNBC)