Oil prices continue to tank as storage fears persist, and commodity giant BP warns of a shock 'on a scale never seen before'
Naeem Aslam, chief market analyst at Avatrade said: "Most of the sell-off is mainly because of the fear that the expiry date for this contract is approaching fast and there isn't much space left for storage."
He said if the June contract falls below $10 then the next support level for traders to keep a look out for will be $5. Wilson added: "The market will remain in steep contango as traders try to find shelter in future months but this only heaps more and more pressure on the front months. " But Aslam pointed out the fundamentals are pointing towards an improved picture saying "demand has hit a rock bottom".
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