The prices of oil in the country have decreased to a 21-year low level since customers are locked down in the home and not using their vehicles for commuting. A recent report shows that prices of a barrel in West Texas Intermediate went down by approximately 14% to $15.65 per barrel. This significant drop was expected since the whole country is going through a pandemic situation created by a coronavirus outbreak. The US storage facilities are also getting weaker every day, and that’s also going to impact the further downfall of oil prices. The whole pandemic situation is badly affecting all over the country, which is the primary reason why investors in the commodity market are withdrawing their money.
The oil industry had been suffering from the downfall of prices before the pandemic situation arrived in the country. Because a few months ago, OPEC members decided to cut oil production by approximately 10%, which resulted in a larger downfall in prices. Meanwhile, there are some reports which show that storage places in the US might run out of their capacity pretty soon. Investors in the commodity market are already in fear because of a pandemic situation created by a deadly virus, which is affecting all the major economic factors of the country.
Experts said everyone currently knows the lousy condition of the oil market in the country, and the problem of not having a sufficient oil storage facility might also be the biggest reason for this recent fall in prices. In the European market also Brent oil, a benchmark used by them to trade oil, also went down by approximately 0.8% to $27.87 per barrel. The pandemic situation is making things harder for the US oil market, and experts believe this condition would be continuing for some more time.