“This situation is natural in view of the fact that it is not possible to control the spread of coronavirus, it led to stagnation in the crude oil market and overcrowding of storages, there is an abundance of market supply,” RIA Novosti quotes Jihad.
He noted that price reductions are a natural consequence of the absence of purchase transactions, which negatively affects the corresponding prices.
“The most important factors that caused the collapse in oil prices are the restriction of passenger and industrial flights, the lack of fuel consumption, in view of all this supply more than demand,” he added.
According to him, the process is associated with "the degree of control over the spread of coronavirus and the gradual removal of restrictions on movement."
“As we return to the natural pace of movement, this will have a positive effect on oil consumption and prices. And while there are restrictions, we will see further losses in the markets, ”said Jihad.
The cost of May futures for WTI crude oil during the course of trading first fell to the dollar per barrel, and then became negative, reaching minus $ 40.