Crude prices marks the worst day since January 1991 Gulf War after OPEC failed to strike a deal with allies for production cut. In an interview to CNBC-TV18, Mark To, head of research at Wing Fung Financial Group spoke at length about if India would benefit from this and the outlook for crude prices.

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He said that the current situation indicates panic beyond fundamentals. “We can see that coronavirus is spreading and the whole world is having a concern or panic on the risk. So sooner or later the risky assets are going to have a significant impact negatively but the overall situation now is more than the changes in the fundamental and more than the changes in the demand side,” he added.

“The risk-off nature of things is dominating the sentiment; the bond yields are edging lower and lower. We cannot see the bottom yet and even negative yield is possible for most of the nations. For the gold prices are going to reach higher and higher despite the fact that the historical high hasn’t been reached yet until now,” added To.

“The overall situation is rather like a panic or something like that especially because the Volatility Index (VIX) is at a high level. We haven’t seen that level for a long time. So at this moment, I would try to be on the side of caution,” he further added.

According to him, most dramatic phase of the price fall is over.