Are Oil Prices Negative?
On April 20, 2020, the Front-Month May 2020 Wti Crude Contract Dropped 306%, or $55.90, for the Session, to Settle at Negative $37.63 a Barrel on the New York...
On April 20, 2020, the front-month May 2020 WTI crude contract dropped 306%, or $55.90, for the session, to settle at negative $37.63 a barrel on the New York Mercantile Exchange. ... “Oil prices not only hit rock bottom, but they also broke the rock.”
Why is oil price negative?
The crash in demand that followed the spread of Covid-19, along with a price war between oil giants Saudi Arabia and Russia in early March spurred the move into negative prices. As the delivery date for WTI grew near, investors began a massive sell-off to take the contract off their hands.
What is negative oil price mean?
Negative oil prices are when the price of an oil futures contract falls below zero. In the oil trading market, the futures price (the price of oil for delivery in the future) is often higher than the spot price (the price of oil for delivery today).
Sarah Jenkins is a veteran tech journalist with over 12 years of experience covering artificial intelligence, mobile innovations, and digital ethics. Her insights have appeared in leading technology publications worldwide.
