Why did crude oil prices fall below 0? How it will impact Indian Economy?

Mayank Mohanka | Last updated: 26 April 2020

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In April 2020, crude oil prices famously plummeted to negative figures for the first time in history, with WTI futures closing at -$37.64 per barrel. This unprecedented event occurred due to a collapse in demand caused by the COVID-19 pandemic and a price war between OPEC and Russia, coupled with storage limitations. In India, the MCX contract, linked to NYMEX, also faced issues, forcing traders to pay significantly more than anticipated. The drastic fall has implications for fuel prices, government finances, and the oil industry, with potential disruptions to disinvestment plans and refinery operations.

New York Mercantile Exchange (NYMEX), USA 20.4.2020, Trade Closing Hours West Texas Intermediate (WTI) Crude Oil May Future Contract Trading at Minus (-)$37 per barrel. By the time, when most of us woke up on the morning of Tuesday, 21.4.2020, crude oil prices had fallen to below zero le

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About the Author

Mayank Mohanka

Chartered Accountant

Sh. Mayank Mohanka is a seasoned Tax Practitioner, a Fellow Member of the Institute of Chartered Accountants of India and a Bachelor of Commerce, in Honours Degree from Shree Ram College of Commerce (SRCC), Delhi University. He is a Senior Partner in a Noida based established and reputed CA Firm, M/s S M Mohanka Ass ... Read more

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