The price of crude oil has come down drastically due to the destruction of Corona. Benchmark crude oil Brent crude has come down to $ 40 a barrel, the lowest level since June. At the same time, the price of American light crude WTI has come to $ 36 per barrel. In the international market, Brent crude was trading moderately for the sixth consecutive day on Wednesday.
The fall in Corona has resulted in a fall in prices amid fears of a slowdown in oil consumption demand due to the impact on economic activity worldwide. Brent crude lost more than five percent in the previous session, while West Texas Intermediate (WTI) fell more than six percent. So far in September, the price of WTI has broken by more than 16 per cent, or around $ 16 per barrel, while Brent has fallen more than 15 per cent.
Due to the fall in the price of crude oil in the international market, the Indian futures market was also trading with softening in crude oil deals.
On the Multi Commodity Exchange (MCX) on Wednesday at around 11 am, crude oil was trading at Rs 2,699 per barrel, with a softening of six rupees from the previous session in the September contract, while the price of crude on MCX in the last session was six and a half. There was a decline of more than percent. Crude oil price on MCX is at its lowest level since June 15.
Brent crude’s November delivery contract on the international futures market InterContinental Exchange (ICE) was trading at $ 39.70 a barrel, down 0.20 percent over the previous session, compared to $ 39.36 a barrel during the previous trade. Broken down to the barrel. At the same time, WTI’s October delivery futures contract was trading at $ 36.66 a barrel, down 0.27 per cent over the previous session, while the WTI traded down to $ 36.17 a barrel during the previous trade.
Anuj Gupta, deputy vice-president (energy and currency), Angel Broking, said the possibility of a slowdown in oil demand due to the Corona epidemic led to an unexpected drop in prices. Besides, the dollar has strengthened and Saudi Arabian company Saudi Aramco has cut prices to increase oil sales in Asian countries, while demand for oil in the US is weak, he said. He said that the price of WTI has fallen by about 16% in the last one week due to softening of oil demand and strengthening dollar.
According to Johns Hopkins University, the total number of coronavirus cases globally has exceeded 27.5 million. At the same time, 8.97 lakh people have died due to this disease.
According to the latest update from the university’s Center for System Science and Engineering (CSSE), as of Wednesday morning, 27,570,742 cases and 8,97,383 deaths had been reported.