Is the oil market related to Bitcoin mining?

The American crude oil – West Texas Intermediate (WTI) – has slumped by around 40 percent as of April 20, 4:45 p.m. CET. There are hardly any buyers for the futures contracts (oil futures) that will soon expire. Why the American oil grade WTI is affected and why mining cryptocurrencies could also become relevant for the oil industry in the future.

The US variety WTI has been cheaper than it has been in 21 years and since the beginning of the year the minus has been more than 70 percent.

 

Future traders under pressure

Futures traders who do not want physical delivery of oil are now forced to sell their contracts at high discounts. After all, there is a lack of storage capacity for the excess oil. For this reason, the price of May contracts fell on the New York Mercantile Exchange (NYMEX). For oil futures that expire later, the price discounts are therefore not as high.One does not have to get lost in the complexities of oil trading in order to recognize that the current situation on the raw material markets illustrates a negative overall situation for all oil producers.