US crude oil prices touch 18 year record low
NEW DELHI : The Organization of the Petroleum Exporting Countries (Opec) plus’ brinkmanship over crude oil production amid the coronavirus (COVID-19) pandemic has resulted in the US crude oil prices touching the sub $20 per barrel mark.
The record low US crude oil price in the last 18 years comes in the backdrop of the Donald Trump administration extending the social distancing guidelines. This may put a majority of shale oil producers out of business in the buildup to the US presidential elections in November. India has been sourcing liquefied natural gas (LNG) and crude oil from the US, with Indian companies investing $4 billion in US shale gas assets.
Post the unravelling of the Opec plus arrangement, the West Texas Intermediate (WTI) on Monday was trading at a recent record low of $20.51 per barrel, while the international benchmark Brent traded at $26.86 per barrel, far below the highs of $147 per barrel of July 2008. Goldman Sachs had predicted the crude prices to touch the $20 per barrel mark.
