OIL PRICES FALL, GLOBAL MARKET CRASHES, US CRUDE OIL GOES NEGATIVE FOR THE FIRST TIME

Corona virus worldwide is witnessing a significant drop in oil prices, meanwhile, Saudi Arabia, Russia have seen a sharp drop in the price of petroleum products due to tensions over oil. After the two countries reached a 'deal', two days ago, oil prices also saw an increase.

 However, more news has now come out that the prices of petroleum products in the global market are once again in a big shock, in the same day US crude oil prices have crashed, followed by US crude oil (WTI) prices has entered in the negative zone. The price of WTI has entered the negative zone for the first time. After which the price went down to minus 37 $ per barrel. May deals closed after US crude oil fell. Several US oil companies came close to closing near to the red zone.

According to the news agency, American oil companies were forced to pay for oil storage, the price of any oil has fallen below zero for the first time since 1983. To be clear, oil prices have never reached this level in history, which is a huge blow to the US economy.

According to analysts, after the agreement between the countries exporting crude oil, crude oil production in the global market was cut but production is still higher than demand.

On the other hand, Brent crude oil prices also declined by 6.2% during trading in the global market and Brent crude oil is currently at the level of 26 26.35 per barrel. Crude oil prices have continued to fall around the world since the Corona crisis erupted earlier in January.

Saudi Arabia and Russia, two of the world's largest oil producers, recently signed an agreement to reduce oil production in order to stabilize oil prices.

Oil prices also saw an increase after contract news surfaced, but analysts said production was still higher than demand. Meanwhile, the people of Pakistan have hoped for petrol to come at Rs 50 per liter and demanded that the full benefit of the reduction in crude oil prices in the world market be transferred. Prices of petroleum products in Pakistan are likely to fall by Rs 15 to Rs 25 per liter.

Economists say the price of fruits, vegetables and other commodities may be low during Ramadan if the government announces a reduction of Rs 15 to Rs 25 per liter in the price of diesel and petroleum products. According to economists, the government should announce a reduction of Rs 10 to 25 per liter in the price of petrol and diesel. On the one hand, the government's announcement will increase tariffs, while the cheaper diesel will reduce the "transportation cost" There is a possibility of a significant reduction in the cost of transportation, which will reduce the prices of fruits, vegetables and other food items, and the people can get great relief during the month of Ramadan.

According to experts, the Corona virus has affected industrial production and hit the economy, so the fall in global crude oil prices is no less than a blessing for oil-importing countries like Pakistan.