Covid-19: American crude oil prices crash by 90%

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American crude oil prices crashed by almost 90% and they were trading at around US$ 2-3 per barrel.

The sudden drop in the prices can be attributed to the lack global demand and excess production, as a result of the outbreak of the Covid-19 pandemic.

Oil producers are having to store crude in storage tanks and oil tankers. They are paying oil traders and refiners to lift crude from the source. As a result, later in the day, American crude oil price went into the negative and closed at US$ -35 per barrel.

The industry expects prices to bounce back in the following months.

Source