With no place to store crude, sellers have started to pay buyers to take deliveries. Due to the unprecedented development, crude prices have fallen below zero for the first time in history.

The supply is in excess of demand around the world in the wake of COVID-19. "In overnight trade, May futures for US crude oil WTI fell to minus $37.63 a barrel level, ahead of their Tuesday expiry. The trend was seen at a time when 90 percent of the world is under lockdown and there is virtually no demand for crude oil," reports Economic Times.

Analyzing the free fall, here is what Varun Jhaveri says. "1. Absolute slump in global demand - Factories aren't working, flights aren't flying etc. 2. May contract is expiring today and traders aren't ready to take delivery of oil. Cost of storing oil has become greater than the cost of oil," he writes, explaining the causes.

What is India set to do now?:

India will now work towards shoring up its strategic oil reserves on the back of lower crude prices. However, due to the national lockdown, India is not in a position to fully take advantage of the lower price.

"India’s remittances from West Asia will be hit if Brent crude stays at current levels for long," CNBC TV-18 has reported.

The opposition will demand rate cuts:

"Oil prices have fallen to historic low, Now at $0/barrel. Retail prices in India is the same as what it was 6 months ago," the Karnataka Congress today said, shaming the Centre. Such noises are expected to go up now.