Today the tremendous decline of oil prices in the foreign markets. $ 4 a barrel is a price of US WTI crude oil. The special thing is that according to Indian time, American oil has fallen by 76% at 10.30 pm. It is the biggest record day’s decline in the crude oil market. In the May contract, there is a big decline according to experts. The June contract is trading at $ 22 a barrel. There is no place to keep oil in America according to experts.
The production is being seen continuously. The demand for crude oil may fall at 29 million barrels per day according to the International Energy Agency. The effect has been seen on the price of crude oil all over the globe. IEA claims to have reduced demand for 29 million barrels per day in April. 33 percent has been seen in the Indian future market.
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Crude market crash:
The US crude oil market has completely crashed.
Deputy and Vice President and research of Angel Broking said the US Crude oil opened at $17.73 per barrel during the May contract but it came to news that there the US has no space to store crude oil. After which there is a continuous decline. Which is now trading at $ 4. According to the International Energy Agency report, they said that due to coronavirus crude oil demand has decreased by 29 million per day during the month of April. Therefore there is a decline in American oil.
Such a decline was seen 34 years ago:
Earlier such decline was seen in the month of March in 1986 according to foreign reports. Even then, the price of crude oil fell by 40% due to oversupply. Due to which price came to around $ 8. Currently, the record is broken by WTI crude oil. During the period of four-month, WTI was at peak level. It was $66 per barrel during the month of January.
Crude oil price in Canada goes to minus:
Western Canadian region has gone to minus when it comes to crude oil. It is around -0.59 dollars per barrel it comes down by 120 percent according to information. The market opened around $2.48 a barrel; it closed around $4 per barrel in the last session. In Canada, there are chances to stay for many days. In Canada, the price has come down to free due to the production and supply of crude oil.
Brent crude oil down 6%:
The price of Brent crude oil currently trading $26.52 per barrel almost down by 6 percent. The kind of demand that is currently seen, OPEC and NOK OPEC countries need to cut more production. If it does not control the situation of the crude oil market will become more worse in the coming days. The price of Brent crude is also decreasing but not in the proportion in which the WTI crude is falling. WTI prices are bound to have an impact on Brent prices over the long term. After importing crude oil, India has to process it, which has its own cost. Apart from this, tax and cess are also levied on it. So with the fall in Brent crude prices, there will be cheaper oil in retail in India, but imagining the situation around zero is also dishonest.
Hey, I’m Sachin. I’m a Blogger living in India. Guide for Personal Finance Planning & financial planning, Tax, Investment, Managing Money, Insurance, Retirement, Real Estate and Loans & more.