Crude oil price falls, cheaper than bottled water
Due to the worldwide infection of the corona virus, the prices of crude oil have fallen. New York has recorded the biggest drop in crude oil prices yet.
On April 20, there was a furore in the New York Oil Market, here oil prices fell so much that crude oil became cheaper than bottled water. Let us know that the fall in crude oil prices is for the supply to be done in the month of May.
Record fall in crude oil prices
The US benchmark fell to a record low and the oil prices for May fell to a one-time low of $ 1.50 a barrel. This was a 90 per cent drop in crude oil prices in a day.
Price drop for the month of may
Let us know that the contract for the supply of crude oil in May is to end on April 21, but buyers of oil are not being found. Because large population of the world is currently locked in homes and many countries of the world are not using oil.
During the trading session, prices continued to fall further in the market. On Monday, US benchmark West Texas Intermediate in New York lost 301.97 percent of crude oil contracts for May and stalled at $ 36.90 a barrel. The prices of crude oil supplied in May were at a maximum of $ 17.85 per barrel and a minimum of $ 37.63 per barrel. The market finally closed at $ 37.63 per barrel. This is the first time crude oil prices have gone negative in New York.
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Old oil not consumed, no place to keep
Going down the prices of crude oil does not mean that today or tomorrow oil has become cheaper. In fact, the contracts that are given for the supply of crude oil in May have now gone negative. Oil sellers are asking the countries of the world to buy oil, but the oil spending countries do not need it, because their billions of population are sitting in homes, so they are not buying oil. Their oil reserves are full, they do not have space to store new oil due to the lack of old oil. So they are not buying oil.
