US oil prices are the lowest in history

Due to the coronavirus epidemic, lockdown is occurring in almost all countries of the world. As a result, the price of fuel oil is falling in the world market. But the impact on the US oil market has never been greater in the history of the world. For the first time in Monday's history, US oil prices fell below zero. This means that producers are paying the opposite buyers to buy oil.

In fact, as oil demand declines, US oil reserves are no longer able to withstand the extra oil pressure. Producers fear the archive will collapse in May. In this situation, they want to remove this oil from themselves. Yesterday, the US-based West Texas Intermediate (WTI) oil price fell minus $ 1.30 per barrel. The BBC reported in a report online.

Travel around the world due to lockdown, human movement all stopped. There is absolutely no demand for oil. Analysts say oil prices have fallen as various contracts have expired. The oil prices, which were originally supposed to be delivered in May, have fallen. Because there is no place to store oil for the month of May in the archives.

The price of WTI oil, which was supposed to be delivered in June, dropped yesterday to $ 20 per barrel. On the other hand, Brent crude oil prices fell 5 percent to $ 25 a barrel yesterday.

Analysts fear that if the lockdown is issued around the world, the price of the oil that is supposed to be supplied in June may fall further.

The demand for fuel oil has declined since the beginning of this year, mainly due to the coronavirus epidemic. As a result, the price of the Who's Who in the world market is decreasing. US oil reserves can no longer take the pressure of excess oil. The price is going down further. By the end of March, prices have come down to the lowest position in five years.

The oil market has been arguing for a month to reduce production. To bring the situation under control, talks began between oil producing countries. After a series of talks on April 7, OPEC Plus and oil producing allies reached a historic agreement to reduce production. The coalition of top oil producers and exporters has agreed to reduce the production of 100,000 barrels per day of oil, which accounts for 5 percent of the world's total production. By April 2022 production will be reduced to various levels.