US crude oil prices fell negative for the first time in history

US crude oil prices fell negative for the first time in history

US crude oil prices went down negatively for the first time in history, followed by a sharp downturn in Wall Street.

According to the foreign news agency 'AFP', the US benchmark West Texas Intermediate (WTI) closed negatively at $ 37.63 a barrel for May delivery.

That is, crude oil sellers were forced to pay the buyer $ 37.63 a barrel in addition to oil.

Tuesday is the last day for the May crude oil deals.

According to the news agency Reuters, because of the Coronavirus outbreak, the world economy is on the wheel, which has also eliminated oil demand.

Wall Street also saw a sharp downturn after the US crude oil price went negative for the first time in history and the S&P Energy Index dropped 2.8 percent.

oil

The Dow Jones Industrial Index 'ET' also saw a decrease of 1.79 percent, while the Nasdaq composite fell 0.46 percent.

It should be noted that last month, the price of oil dropped sharply at the start of the war against the non-OPEC member of Russia, a key member of the Organization of the Exporting Countries (OPEC).

Earlier this month, Riyadh and Moscow agreed to reduce oil production by one million barrels per day, ending the dispute.

However, oil prices are steadily declining, which analysts believe is not enough to account for the massive reduction in demand due to the virus.

The US Energy Information Administration says crude oil storage in the world's largest economy last week rose to 192 million by 50 thousand barrels.

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Oil prices

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