The current difference between oil prices is due to oil companies trying to rise the barrel up.
For the past week, oil futures for delivery in May 2020 have continued to fall in price because of excess production (along with refining), and also because of the slowdown in the global economy amid the pandemic of the COVID-19 virus. This situation continued until the OPEC heads' meeting on Sunday, April 12.
On April 11, Forbes reports that one of the largest oil company in North Dakota (USA) has hired bankruptcy consultants because of the negative price for some oil grades.
On April 13, Reuters reports that OPEC + countries have agreed to reduce oil production in May and June 2020.
Against the background of such diversified news and given that there is a surplus of oil in warehouses in March, there is a situation in the market where long-term contracts (June 2020) have increased in price amid expectations of growth. Though contracts for the coming month (May 2020) decreased in price against the background of surplus finished goods and a decrease in current demand.
You can see the price of light oil contracts broken down monthly at the NYMEX website. We would like to remind you that the information provided on the link has a delay of 10 minutes from the market price.
Today, Pelliron offers trading in liquid contracts that are available in the futures oil market two months in advance.
Please use the above information when trading futures on the current high volatility market.