



Ambani’s net worth crashed by 41% this year to stand at $34.4 billion on 19 March, according to the Bloomberg Billionaires Index.





Most of this effect comes from the fact that his retail-to-refining-to-telecom conglomerate Reliance Industries receives three-fifths of its operating profits from its oil business.

The free fall in crude and subsequently gas prices will alter his fortunes.



Indian investors lost ₹30,000 crore in Reliance Industries in the first few minutes of trading today, thanks to the crude oil price crash . For the very first time in history, US crude oil prices went sub-zero in value per barrel, though it did recover to the positive territory to $0.58 per barrel.This is more bad news for Mukesh Ambani ’s wealth has already been oscillating in the last few weeks, and the crude price crash will not help his Reliance Industries.Ambani’s net worth crashed by 41% this year to stand at $34.4 billion on 19 March, according to the Bloomberg Billionaires Index. But it also recovered slowly to reach $45 billion as of April 20, as per index . However, he lost his position as one the top ten billionaires in the world, to stand at 19th this year, according to Forbes.Ambani was worth $58.6 billion when the year started.Most of the effect on his wealth comes from the fact that his retail-to-refining-to-telecom conglomerate Reliance Industries receives three-fifths of its operating profits from its oil business. And the free fall in crude and subsequently gas prices, will alter his fortunes.Crude oil prices turned negative on Monday, in a shocking move as demand plummeted. West Texas Intermediate crude for May delivery shed more than 300% to settle at $-37.63 per barrel on the New York Mercantile Exchange.What it means is that oil producers are paying the buyers to take the commodity off their stocks amid fears that storage capacity could run out in May, the BBC reported.With the COVID-19 induced lockdown restricting movement across the world, demand for oil has all but dried up.The US light crude West Texas Intermediate (WTI) for May at New York Mercantile Exchange (NYMEX) was trading at - $35.34 per barrel from the last closing of $18.27 per barrel.This is only the second part of the effect of crude oil prices on Reliance Industries. Its share price plummeted as much as 39% between January 1 and March 23 during the massive sell off triggered by Coronavirus.Since mid-2018, RIL stock was trading above ₹1000. Moreso, it added a whopping ₹2.49 trillion — highest value addition in market value — 2019 alone. But it couldn’t hold on to success in 2020.On March 19, RIL shares were trading at ₹917 apiece.Most of his RIL’s share price erosion happened in March, when crude prices saw a steep fall fearing global recession. While his telecom and retail businesses are going strong, his oil refining business is directly linked to the price of crude oil.RIL’s fortunes were tethered to the outcome of an oil war between Saudi Arabia and Russia. Ambani was also supposed to close the $15 billion Saudi Aramco deal by March 31 this year. But with a lockdown in place, investors are wary, though media reports suggest that the deal might be closed . See also: Mukesh Ambani has lost at least $17 billion in 26 days as Coronavirus fears dent RIL shares