U.S. crude prices at Texas slide to near USD 10, lowest since late 1998

The grade, priced at the heart of the Permian basin in Midland, Texas, traded at $9.50 below benchmark prices, traders said, bringing the outright price to near $10 a barrel.

West Texas Intermediate crude (WTI) at Midland, along with other actively traded U.S. crude oil grades, have sharply weakened since the coronavirus pandemic has restricted the movement of billions of people around the world and shriveled energy demand.

A price war between Saudi Arabia and Russia that erupted earlier in the month has also flooded the market with supply, further weighing on export demand for U.S. grades.

WTI at East Houston (MEH) crude, one of the biggest Gulf Coast export grades, traded at minus $6.00 below benchmark futures, its lowest on record.

Traders have warned that Midland crude will continue to slide as storage tanks around the country quickly fill up, forcing producers in the largest U.S. shale basin to shut output and refiners around the nation to cut crude runs.

A price war between Saudi Arabia and Russia that erupted earlier in the month has also flooded the market with supply, further weighing on export demand for U.S. grades.

WTI at East Houston (MEH) crude, one of the biggest Gulf Coast export grades, traded at minus $6.00 below benchmark futures, its lowest on record.

Traders have warned that Midland crude will continue to slide as storage tanks around the country quickly fill up, forcing producers in the largest U.S. shale basin to shut output and refiners around the nation to cut crude runs.