KT explains: Why US crude price fell below zero

KT explains: Why US crude price fell below zero

KT explains: Why US WTI crude price fell below zero, and what it means for you. KT answers some questions you may have about the US oil price falling below zero.. The US crude West Texas Intermediate (WTI) slumped below $0 per barrel for the first time in history while its peer Brent comparatively remained stable, dropping 9 per cent to $25.57 a barrel.. How many grades of oil are there?There are three main grades or benchmarks for oil - Brent, WTI and Dubai/Oman.. Most of the crude oil prices are pegged to these three benchmarks.2.. WTI contracts are traded on New York Mercantile Exchange while Brent futures are available on ICE Futures Europe.. What are oil futures and how do they work?Futures are advance contracts and are highly volatile.. Oil futures are traded because oil extraction and delivery via tankers is a time-consuming process.. Why did WTI price fall below zero on Monday?The key reasons for the decline in the WTI price was the slump in demand, no storage capacity in the US and the expiry of the future contract.. Under futures contract, WTI needs to be physically delivered while Brent is deliverable offshore.. On Monday, oil held in