On 20 April 2020, the May WTI futures contract closed at minus $37.63 a barrel. What mainly explains this?

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The contract was near expiry, and traders holding it faced delivery at Cushing with little available storage or delivery capacity. The May WTI contract was near expiry, and its holders faced physical delivery at Cushing, Oklahoma. Pandemic lockdowns had crushed fuel demand, and usable, booked storage and delivery options were tight, so some traders paid others to take the contract off their hands. This was not the price of every oil barrel — the final settlement the next day was positive, and Brent, linked to seaborne cargoes, stayed positive throughout. Read more: Economy0032 — Global Crude Oil Benchmarks: WTI, Brent, and Dubai/Oman.

On 20 April 2020, the May WTI futures contract closed at minus $37.63 a barrel. What mainly explains this?

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