WTI Closes Up 25% on Last Day of April

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] International oil prices, which had recently fallen into negative territory, closed with a sharp rise on the last day of April.

On the 30th (local time) at the New York Mercantile Exchange (NYMEX), West Texas Intermediate (WTI) crude oil for June delivery closed at $18.84 per barrel, up 25.1% ($3.78).

The rise was driven by news that U.S. crude oil inventories fell short of expectations amid a sharp drop in demand and oversupply caused by the COVID-19 pandemic.

The U.S. Energy Information Administration (EIA) reported that U.S. crude oil inventories increased by 9 million barrels last week, which was below the expert forecast of a 10.6 million barrel increase.

Earlier, on the 20th, May WTI fell as low as -$37.63 per barrel. Due to ongoing downward pressure from the COVID-19 crisis and the coincidence of futures contract expiration, an unprecedented situation occurred where oil prices fell into negative territory for the first time in history.

WTI prices fell 12% over the course of April and have plunged 70% since the beginning of this year.

Meanwhile, international gold prices declined.

Gold for June delivery on the New York Commodity Exchange traded at $1,694.20 per ounce, down 1.1% ($19.20) from the previous day. However, gold prices recorded a 6% increase over the past month.

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