A decision of Saudi that made crude oil price became cheaper than water!
In the international market, the price of crude oil has suddenly dropped by 30% after which crude oil price has came below ₹2,200 per barrel in the Indian futures market. This is the biggest one-day decline in the price of crude oil since the 1991 Gulf War, which is mainly due to the lowering of crude oil prices by Saudi Arabia.
A barrel contains 159 liters of crude oil. In this way, the price of one liter of crude oil will come to about ₹13-14 while for a bottle of one liter water, you have to pay at least ₹20.
Due to Corona virus and Yes Bank, there was a furore in the Indian stock market on Monday. The Sensex fell by about 2357 points, while the Nifty also fell by more than 600 points. However, Yes Bank shares saw a jump of 34 percent.
This is the biggest drop in the Indian stock market so far. Earlier, on 24 August, 2015, the Sensex had lost 1,624 points. Investors are nervous due to such a big fall in the market.
The crude oil price war and the outbreak of coronavirus, the price of crude oil in the international market has fallen by more than 30 percent on Monday. Crude oil prices fell more than 30 per cent to below Rs 2,200 per barrel in the domestic futures market.
On the Multi Commodity Exchange, MCX, crude oil was trading at $ 21,62 per barrel, down by Rs 997, or 31.56 percent, in the March contract.
At the same time, Brent crude was trading at $ 33.27 on the international futures market Intercontinental Exchange, ie ICE, in the May contract, down 26.51 percent from the previous session, while earlier the price fell upto $31.27 a barrel.
Anuj Gupta, deputy vice-president of Angel Broking (Energy and Currency Research), said that Saudi has entered into a price war after OPEC and Russia did not agree on the reduction in oil production. It must also be noted that if some other members of OPEC joins the price war, the price of crude oil may fall further.
April delivery on the New York Mercantile Exchange or NYMAX, was down by 28.44 percent to $ 29.54 per barrel in the US Light Crude West Texas Intermediate contract, compared to the previous low of $27.34.
He said that a similar price-wise scenario was seen in 2015 when Saudi Arabia said that they won’t worry if the price of crude oil comes down to $20 per barrel.