Crude oil prices slump: US crude oil prices have reached below zero for the first time in history, that is, they have been bad. This is the lowest level of registration. This decline in oil prices occurred due to low demand for crude oil and lack of storage.
The implication of this decline is that oil producing countries are now asking consumers to buy oil because they fear that if oil is not sold, the storage problem will increase.
Because of the closed circuit, people live all over the world. Another important reason for the decline in oil demand. Due to a storage problem, many oil companies hire tanks to save on increasing revenue, but this has had an effect on US oil prices. USA and it’s been bad, that is, below zero.
West Texas Intermediate (WTI), considered the United States oil producer, dropped to $ 37.63 a barrel. The American Storz Center is now worried about a decline in oil demand and a decline in demand.
Crude oil prices slump amid coronavirus chaos
Monday’s slowdown affects global oil markets.
Crude oil prices have fallen 8.9% to Brent International Bank. Here the price of oil dropped to $ 26 per cylinder. The oil industry was already dealing with problems due to lack of demand and conflict between manufacturers to reduce production.
Crude oil prices slump amid coronavirus chaos: Earlier this month, OPEC members and their allies agreed to reduce oil production by 10%. This was the first task to achieve a major reduction in oil production. However, some experts believe that many problems were not solved by reducing oil production.
Stephen Inns, Exicorp’s leading global market strategist, said: “It is not too late for the market to understand that OPEC Plus will not be able to measure oil prices, especially not at current levels. . “
Can problems in the oil market last longer?
BBC economist Andrew Walker believes that the world currently has more crude oil than it needs and that economic demand has led to a reduction in world oil demand.
The largest oil exporter, OPEC and its Russian allies, had already approved a record reduction in oil production. A decision was made to reduce oil production in the United States and abroad. But despite the decline in oil production, the world has more crude oil than is needed.
They believe the question is more than just use, the question is whether it is OK to save and store oil while waiting for Lockdown to open with the government to return to normal.
Saving in the oceans and soil is also filling up fast. The shortage of shops is also becoming a problem. Moreover, even after the crown is broken, world demand for oil is slowly rising and the situation will take a long time to return to normal. Because it all comes down to dealing with a health problem.