New York; Demand for crude oil in the world’s largest US has fallen due to the deadly coronavirus. Impact For the first time in US history, the price of all oil, including petrol and diesel, has fallen into the abyss.
US oil companies have purchased and stored excess oil in the international market as a precaution as crude oil could be depleted by May. However, the lockdown has been announced as a threat to the coronavirus, and the demand for oil in the US has dropped completely.
In the meantime, companies have rented tankers for additional oil storage and have to pay for this as well.
West Texas Intermediate (WTI), the US oil standard, is reported to have fallen to minus $ 37.63 a barrel. It is being interpreted that this growth will lead to job cuts in the US oil sector.
Demand for oil has plunged over the past two months, not just in the US. Effect Earlier this month, members of the Organization of International Petroleum Exporting Countries (OPEC) and its allies signed a record deal that would cut global oil production by about 10%. This deal is known as the largest oil production reduction agreement to date.