Crude oil futures has entered into negative territory as the demand of the commodity is falling amid Coronavirus pandemic.
As reported by ET, May futures in New York fell to as low as -$40.32 during Monday’s collapse.
Last Thursday, OPEC members and its allies-led by Russia gave nod to cut oil production by 10 million barrels per day in a bid to stabilize oil markets, however, the measure is not seen enough to make a difference in their rates.
“The absolute collapse of WTI prices is primarily owing to the expiry of May WTI contracts, alongside the significant demand destruction due to lockdowns in several countries and supply glut in oil markets,” said Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking Ltd.
ET earlier reported that fuel retailers are making an exceptional margin of Rs 13 per litre, six times the average of 2019-20 as domestic fuel rates is stagnant for weeks, while global crude prices touched the rock bottom.