Future contracts are not looking good as countries have stocks with them.

First time in history US crude oil futures turned negative on Monday. We show the figure below zero as many traders sold Crude. All the major countries have stocks which means no new demand.

It touched the low of -$40 a barrel. Brent too was down $2.50 or 9% to settle at $25.50 a barrel.

What's the reason US crude oil prices go negative?

From last month the crude market is seeing which was never expected nor dreamed. It turned negative in our time. Coronavirus is killing market too. 

Due to this pandemic diseases, the demand for oil has come down drastically. The shutdown of significant economies has effected us the crude price.

Still, all the producers are not losing hopes as they are digging out Crude from their wells, the current situation is demand is 0 and supply is 100. It is the most significant imbalance of our time. This happened after 25 years.

The primary reason crude price plunged is because of trade is going on in the world. 

Due to this condition, many crude companies are desperate to sell their surplus barrels. We might see sharp falls this year due to the sudden collapse of oil prices.

Price in India is over 60 per litre, will we see the lowest price in India? Will Indians drive their cars and scooters with the lowest price? Jokes apart when things will go normal everything will come under balance.

We feel Oil prices will recover soon.

This problem we feel will remain the same until September until we find a solution for Coronavirus once people start to live a healthy life all the economic balance will come back.

We hope that the entire world comes on track soon so that we can see the balance in supply and demand in all the departments.