Crude oil price now down nearly 50% on the day, hits 34-year low

Crude oil prices are on track to post the worst day on record as the June contract for WTI, the benchmark for U.S. crude prices, trades almost 50% lower amid worries about a lack of storage.

“Price discovery is complicated, more so than usual, by the soon-to-expire WTI NYMEX front-month contract for May 2020,” wrote Stephen Innes, global chief market strategist at AxiCorp.

“Even more so as the near-term prices are trading massively discounted due to storage premiums getting packed in the far dates, creating very squeezy conditions on the expiring contract as final day settlement (FDS) looms,” he added.

As a result, crude oil prices are currently trading at the lowest levels since 1986. The levels around $10.65 are of crucial importance for crude oil prices as they managed to cap further losses in 1998. If breached, the next support is 1986 low of $9.65.