US crude oil price crashes to historic $ 0.01 per barrel

21 April, 2020 | newsx bureau

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US crude oil price plunges to a penny per barrel on Tuesday following several historic low.

The United State benchmark West Textas Intermediate (WTI) crude oil price crashed on Tuesday, April 21, to touch the historic low of a penny per barrel amid the coronavirus outbreak. After beating the record low multiple times, crude oil price touched a penny per barrel surpassing $0.27 record at about 18:15 GMT in New York.

The stock market’s most dramatic fall in US crude oil for May is about 90% drop in just one day, said reports.

A market expert said the steep fall in crude oil price is because of very less demand and no storage. The companies have cut the production, still they failed to address the supply glut.

Another expert said crude oil price fell into negative territory (minus $37.63). He sellers actually paid buyers to take the stuff as they have excessive of unused oil and no space to store it.

And if oil would not be used, kept then no one would want a crude contract that is about to come due.

Daniel Yergin, vice chairman of IHS Markit Ltd and an oil historian said the May crude oil contract is going out not with a whimper, but a primal scream.