The global economy, stalled due to the Corona catastrophe, has extracted oil in the international market itself and its price has become cheaper than water. Not only this, its prices have gone down in the commodity market, that is, the seller of oil will also pay the buyer along with the oil.
On Monday, the oil price benchmark in the US fell to a historic low and the situation was unprecedented. The futures price in the US benchmark crude West Texas Intermediate (WTI) reached $ 0.97. At the same time, the price of oil reached -37.63 per barrel. That is, in the futures market, the price of one barrel of oil reached almost zero dollars, while buying one barrel of oil in the market will also get around $ 38.
On Monday, the oil market started trading at $ 18.27 per barrel and prices fell less than a dollar earlier. After this, the price of oil reached negative as the market closed.
In fact, due to Corona, the demand for at least a decade in the world economy has been abolished, there is an increased risk of loss of jobs of millions and the value of billions of dollars of big companies is getting lost. Economic and industrial activities have come to a standstill. All this has had a terrible impact on the demand for oil.
In addition, consumer demand has reached a very low level due to the corona virus epidemic and most of the companies are expected to have very poor results this year. In such a situation, the effect of this has come in the form of a fall in oil prices.
Even before the ongoing price war between Saudi Arabia and Russia, oil prices were sabotage, although at the beginning of the month, both countries and some other countries combined to raise the price of oil by around 10 million barrels a day. Decided to cut, but the price continued to fall.