The Moscow Exchange said on Monday it would suspend trading in West Texas Intermediate (WTI) May oil futures contracts, set to expire on Tuesday (April 21), following the record-breaking crash on Monday, RIA Novosti reports.
The Moscow Exchange “suspends trading in the contract for Light Sweet Crude Oil (contract CL-4.20) with expiration on April 21, 2020, during its afternoon trading session on April 21, 2020. The decision was made to prevent additional negative consequences for traders and their clients due to the unprecedented fall in prices for this contract at NYMEX on April 20,” Moscow Exchange said in a statement.
“The remaining series of futures contracts and options for Light Sweet Crude Oil and Brent will be traded without changes,” the statement says.
For the first time in U.S. history, WTI oil prices went into the negative segment on the New York stock exchange on Monday. By 16:36 EST (23:36 Moscow time), oil prices dropped by $35.97, or 196.88%, to minus $17.7. July futures dropped to approximately $20 per barrel.
WTI oil is extracted in Texas and is used mainly for producing gasoline. It usually trades lower than the Brent crude, which serves as a benchmark for the entire oil market, including Russia’s Urals. This is related to the fact that, unlike Brent, WTI futures are directly linked with physical deliveries.