New Delhi: For the first time since 1986, the price of crude oil has gone below zero. This is the biggest drop in history for American benchmark crude West Texas Intermediate (WTI) prices. Due to the Coronavirus crisis the demand for crude oil has come down and all the oil storage facilities have also reached their full capacity. On Monday, the price of crude oil in the market was down to $ 37.63 per barrel.

However, India's dependence is on the supply of Brent crude, not on WTI. Therefore, the negative impact of US crude on India will not have much effect. Brent prices still remain above $ 20 and this decline was only reflected in WTI's May futures, with June futures still above $ 20 a barrel. US crude oil has recorded a 14.8 percent decline in June delivery, currently at $ 21.32 a barrel.

Let us tell you that India is a major importer of crude oil. India imports 85 per cent of its consumption through imports. So whenever crude is cheap, India gets its benefits. Import is not reduced in case of cheap oil, but India's balance of trade is low. This helps the rupee because the Indian rupee gets strengthened against the dollar, which also controls inflation. Due to cheap crude oil, its prices will also remain low in the domestic market.

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