COVID-19 is a pandemic that has led to massive lockdowns all over the world. Factories and production units are shut, travels are halted and there is a huge contraction in the world economy. The global demand for oil has reduced drastically. With the decrease in demand, there is a huge surplus availability of oil. The storage capacity of oil has filled up and oil-producing nations do not have storage space. Some nations have arranged oil tankers to store oil but the cost of storage is even more than the cost of oil. Oil-producing nations are feeling it is better to dump the oil rather than spend massively on their storage. Hence, the benchmark price of the oil is forced to be lower than the cost of production, transport and storage.