New York March 10: The stock market collapsed in Wall Street on Monday after a steep fall in crude oil prices. Crude oil prices fell 21.3% to $ 35.58 per barrel in Brent, while the price of the US WTI rose to $ 30 a barrel. Oil prices have reached a low level for the first time since the 1991 Gulf War.
Saudi Arabia has clearly told Russia and OPEC that it will increase production instead of reducing crude oil production. It should be noted that the cost of production of crude oil comes to about forty dollars per barrel. With this, there is an apprehension of an outcry in the energy industry, while being a major oil importing country, there is also a huge improvement in India’s economy.
India is the third largest oil importing country after the US and China. A nearly ten percent fall in Saudi Arabia’s flagship ‘Armco’ stock has resulted in a loss of four hundred billion dollars. On this, the government has played a bugle of further increase in crude oil production and price war directly from Russia and OPEC countries. Armco’s stock has also fallen below its IPO level.
This is the first time since 2008, after the steep fall in crude oil prices, that the stock market has fallen twenty percent below its peak last month. The S&P 500 slipped 7.6% on Monday as the Dow Jones index hit 7.8%, its lowest level in a decade, after crude oil production cuts were not agreed at the OPEC meeting on Friday.
Stock market experts are of the opinion that the corona virus has caused the inverted stock market in Wall Street to affect the Asian stock market as well as the European stock market. America is once again going through the situation of Lemon Brothers in the recession of 2008. The main reason for this is the steep fall in prices due to reduction in demand for crude oil from China, Japan, Korea and India and no production cuts.
