Demand recovery, storage facility ramp up key for sanity in crude oil price

A recovery and sustenance in demand, especially in the US and China, will be essential in restoring normalcy in the oil markets with prices of key variants – WTI and Brent – coming back to acceptable levels say analysts.

On Monday, the front-month US WTI benchmark crashed into negative territory for the first time ever in history, closing at a negative $37.63/barrel, signaling that production have exceeded the capacity to store the incremental volumes, in the short-term at least. Prices, however, recovered partially on Tuesday.

The negative close was only for the May contract, analysts said, which expires on April