Due to the current pandemic by COVID-19 the economy is to an all-time low.
The oil prices are below zero for the first time in history. The oil market has crashed miserably. If the oil market crash keeps ongoing the oil market will lead to bankruptcy. In this article, we will talk about the current oil prices, oil stock prices, and much more.
Crude oil prices in the US may have fallen to a historic minus $37.63 a barrel on Monday due to coronavirus. The demand issues and inability to store for future use.
Check this if you want to know whether India will gain from the current oil market crash.
Will the oil market crash lead to bankruptcy?
After U.S. crude oil fell into negative territory, the expert has warned that the oil market crash could force many companies to stop operating. U.S. oil companies have different production costs and different debt burdens.
WTI prices may have steadied somewhat after a wild couple of days, but the physical market for crude is still collapsing.
Current oil prices hit two-decade lows in low demand.
The June contract for US West Texas Intermediate (WTI) crude dropped 27 percent to $14.89 a barrel by 11:00 a.m. ET (1500 GMT), after hitting $11.79, its lowest since 1999.
Brent for June delivery, the front-month contract, fell to as low as $18.10, its lowest since November 2001. It was down 21 percent at $20.05.
Oil stock prices
Since the oil prices are to an all-time low or you can say they are negative for the first time in history it is good to buy shares. Energy stocks fall into that unloved category right now — oil prices are getting hit by a supply/demand imbalance.
Oil stock price of the big companies has also gone to an all-time low as well.
So if you are looking to buy a few, go ahead this is the best time.
2020 saw the collapse of crude oil prices as demand disappeared due to the global shutdown that paralyzed the world’s economies.
However, logistics and supplies of the fuel have not been affected in most countries. And it is not easy to shut down oil-producing wells, said sources.