US crude oil price reached the abyss on Monday, April 20 amid Coronavirus infection. New York saw the biggest drop in the price of crude oil in history. US benchmark crude West Texas Intermediate (WTI) saw its worst day in history so far on Monday.
Crude oil prices on Monday fell to the lowest level of $ 37.63 per barrel – down from $ 0 per barrel in WTI. Trading started at $ 18.27 per barrel but it dropped to a historical low of $ 1 and then zero and later to negative. For the first time after 1946, such a decline has been observed.
This decline in oil prices has occurred due to declining crude oil demand and lack of storage. Significantly, the largest exporter of oil, OPEC and its allies such as Russia, had already agreed to a record reduction in oil production. The US and other countries also decided to reduce oil production. But, despite the reduction in oil production due to the closed industrial business due to Corona, the world has more crude oil available than needed.
Earlier in the day, when the market opened on Monday, it came down to $ 10.34 per barrel, its lowest level since 1986. Due to the corona virus crisis, worldwide demand for oil has been falling continuously.
According to Global Standard Time (Greenwich Mean Time) at 3 pm (Indian time at 8.30 pm, it saw a slight correction and was running at $ 10.82 a barrel. Still, it was 41 percent lower than Friday. Traders said The price drop is worrisome as May delivery contracts are to be settled by Monday evening but no investor is willing to take actual delivery of oil.
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