New York: US crude oil market crashes in the global market, US crude oil price has dropped by 107% And made a negative $ 1.5 billion. Production was stopped at Canadian crude oil price zero, after which there is a possibility that oil prices in Pakistan could fall by up to Rs 25.
According to details, Corona virus worldwide is witnessing a significant drop in oil prices, meanwhile, Saudi Arabia, Russia have seen a sharp drop in the price of petroleum products due to tensions over oil. After the deal was reached in both countries, two days ago there was also a rise in oil prices.
Crashes in US Crude Oil Market
News has now come out that the prices of petroleum products in the global market are once again in a big shock, on the same day US crude oil prices have crashed, followed by US crude oil (WTI) prices. Has entered the negative zone.
The price of WTI has entered the negative zone for the first time. After that, the price has dropped to a negative one and a half dollars. The US crude oil price has dropped by 107% indefinitely and has made a negative $ 1.5 billion.It should be noted that in the global market, crude oil prices have reached the lowest level in four decades.
According to analysts, after the agreement between the countries exporting crude oil, crude oil production in the global market was cut but production is still higher than demand. On the other hand, Brent crude oil prices fell 6.2% during trading in the global market and Brent crude oil is currently at $ 26.35 a barrel.
According to the report, oil storage capacity in the United States is rapidly diminishing, with US crude oil prices falling to the lowest level in two decades. Crude oil prices have continued to decline worldwide since the Corona crisis began in January.
Saudi Arabia and Russia have signed an agreement to reduce oil production in recent days, which aims to reduce oil production in order to stabilize oil prices.
Oil prices also saw an increase after contract news surfaced, but analysts said production was still higher than demand. Meanwhile, the prices of petroleum products in Pakistan are likely to drop from Rs 15 to Rs 25 per liter.
What Economic Experts Says about the Crashes of oil Market?
Economic experts say the price of fruits, vegetables, and other commodities may be lower during Ramadan if the government announces a reduction of Rs 15 to Rs 25 per liter in the price of diesel.
The government can reduce the price of petroleum products by up to 24 rupees per liter if the full benefit of the reduction in crude oil prices in the world market is passed on to the public.
According to economists, the government should announce a reduction of Rs 10-25 per liter in the price of petrol and diesel. On the one hand, the government’s announcement will increase the revenue while diesel will be cheaper than the “transportation cost” There is a possibility of a significant reduction in the cost of transportation, which will reduce the prices of fruits, vegetables and other food items and provide a huge relief to the public during Ramadan.
According to experts, the industrial output is affected by the Corona virus and the economy is in shock, so the decline in crude oil prices in the global market is no less a blessing for oil-importing countries like Pakistan.