Expiring U.S. crude oil futures contract posts 'epic' 40% slide

REUTERS | An extreme situation has developed in the U.S. crude oil futures markets, as the current front-month May contract expiring on Tuesday has dropped by a whopping 40%, opening up the widest gap ever between it and the next contract, nearly $11 a barrel. That gigantic spread CLc1-CLc2 is the result of the shocking fall in demand due to the coronavirus pandemic and glut of global crude supply hitting the markets all at once. While oil-producing nations have inked a deal to cut output, those cuts will not come quickly enough to avoid a massive clog in the next couple of weeks.

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