Corona's Impact on Crude Oil Prices...!

Crude Oil Production 

   Crude oil futures prices in India have fallen to $ 20.6 per barrel on April 1, 2020 after the previous quarterly decline. This decline can be seen for some time. Crude oil price in the futures market was around $ 40 a barrel on December 2014. But after that the price of crude oil is continually falling. Since December 2019, on the MCX Stock Exchange, it has fallen by 45.5% ie. $ 39 to $ 20.9 per barrel on April 1, 2020.

   Crude oil prices had not been so low for many decades. The main reason for this decline is due to the spread of the corona virus, due to the corona, the Crude oil price war started in Saudi Arabia and Russia, in brief, it was said that in 2014 there was an OPAC Organization and an oil trade agreement with Russia. Was. In fact, OPAC Organization reduces the production of crude oil to control the price of crude oil. When the price of crude oil decreased, Saudi Arabia, the chairman of OPAC Organization, was asked to reduce the production of crude oil. And Russia did not listen to it because Russia wanted to see how the world is affected by the Covid-19 caused by the corona virus, what difference does it make in the international market. Is it making any difference to the US Shell Oil Company, or is it going into a loss. But this had nothing to do with the OPAC countries. There is a crude oil price war between Saudi Arabia and Russia, but this war started by Saudi Arabia itself. In order to offset the loss of Russia, Saudi Arabian crude oil production has increased significantly, causing the international market to fall significantly and crude oil is losing $ 1 million per day due to the low market price of crude oil.

   The spread of infection due to corona virus has further effect, due to corona, the whole world is in a state of lockdown. Due to which the demand for crude oil has come down to 30%.

   If you invest in futures market, then it will be beneficial for you to stay for some more time. Because you invest at the right time, you will earn maximum profit. Futures market experts believe that these prices will fall further.