Oil prices fell negatively to $ 37.63 a barrel, according to US-based oil companies’ Standard West Taxes Intermediate (WTI)
For the first time in the history of the world, oil prices have dropped to negative levels due to Corona’s global outbreak of reduced oil consumption and increased production.
This means that oil companies are paying buyers themselves in May due to the risk of flooding and storage facilities.
Worldwide lockdown due to Corona virus outbreak has led to a significant drop in global oil consumption and demand and the oil market has crashed. As a result, oil companies are hiring additional tankers to store rented tankers, and the price of US oil has dropped to negative levels.
According to West Texas Intermediate (WTI), the current quality of American oil companies, oil prices have fallen negatively to the lowest level of $ 37.63 a barrel.
The sharp decline in the price of oil in the global market on Monday also became a technical basis as the oil trade is traded according to its future value and the contracts up to May are ending on Tuesday.
Therefore, oil companies want to hand over the oil purchased under the agreements to the respective countries so that they do not have to incur additional costs for storing it.
At the same time, crude oil prices for US oil companies, which were bought for June this year under the standard WTI, were lower and their trade in the global market on Monday was close to $ 20 a barrel.
While oil prices for Europe and the rest of the world, crude oil company Brent crude also saw a drop of 8.9% and its global market was lower than $ 26 a barrel.