Prices of key Latin American crude grades plunged this week following the crash in benchmark crude futures, aggravating an already-weak market that has seen very few spot sales throughout April, traders told Reuters on Tuesday.
Brent crude futures plunged 25% on Tuesday to their lowest level in nearly two decades, a day after panicked traders sent U.S. West Texas Intermediate oil to minus-$40 per barrel because of a massive supply glut and a 30% collapse in demand due to the coronavirus pandemic.
As physical U.S. crude grades fell into negative territory for the first time in history, Mexican, Ecuadorean and Venezuelan grades indexed to them, including Mexico’s Maya, also traded negative for the first time. Heavy volatility has caused traders to back away in recent weeks, effectively shutting down trading in key regional grades.
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