The oil prices and the oil markets have gone haywire on Monday. The oil prices have fallen so much so that the traders had to pay the buyers to take away the oil from them. The price of the oil in the US has dropped as much as $50 per barrel and often in a day or sometimes $30.
The demand for oil prices is collapsing, all the countries like Saudi Arabia and Russia and some other nations had decided to cut down the production of oil but unfortunately, there is not enough place the oil that is being produced by the industry by itself. The industry naturally produces 100 million barrels per day and now the places seem to have become very less for the storage of crude oil.
Prices of the oil have fallen negative which means that the oil seller had to pay $30 to the buyer and sell the oil to the buyer. Due to the lack of oil, it seems no one wants oil.
“If you are a producer, your market has disappeared and if you don’t have access to storage you are out of luck,” – said the Vice President of the oil market at IHS Markit.
Moreover, the refineries are not willing to convert the crude oil into gasoline, diesel and other products because there is no such commuting nor any flights being used that other products would be sold.
The stocks of all the Asian countries fell on Tuesday morning, more and more companies are disclosing their financial hit and shut down. On Monday the market was struck below the belt that almost all traders were ready to pay the buyers and many did actually pay the buyers $30 and sold the oil. This also indicates that the global economy will remain frozen for some time.
*The facts and the figure of the news have been referred from The New York Times and the subject is intact.