Tuesday 21 April 2020

Oil drops below $0, signaling extreme collapse in demand

The price of oil on Monday tumbled into negative value. In theory, it means that sellers would have to pay buyers $40 or more just to take a barrel off their hands. It's symbolic, more than anything. It won’t have much effect on the price of gasoline at the pump.

However, this shows how much the Coronavirus Covid-19 Pandemic has crushed the world’s energy markets. The idea that a barrel of oil could be worth less than zero was a shock to many people.

1 comment:

  1. Here is an article that explains How Oil Prices Could Go To $100

    Oil prices certainly went negative recently. The West Texas Crude Intermediate benchmark plummeted to previously unimaginable depths, closing that day at negative $37.63 per barrel.

    Even though oil prices are lower than they have ever been, "one energy fund thinks $100 a barrel is achievable," reported the Midland Reporter-Telegram earlier this week.