US oil prices go ‘negative’ for the first time. What does this actually mean?

Due to self-quarantine and social distancing arising from the pandemic, many oil suppliers have plenty of crude oil on their hands since energy needs are down.

oil

As the COVID-19 pandemic continues, the cost of crude oil dropped to less than $0 per barrel on Monday. 

People are confused and asking what does that mean?

Due to self-quarantine and social distancing arising from the pandemic, many oil suppliers have plenty of crude oil on their hands since energy needs are down.

According to Politico reports, the United States is almost out of storage to store the oil. The price per barrel for oil to be delivered in May fell to a record -$37.63 on Monday. It means that those contracted to produce oil are literally paying consumers to take it off their hands.

As tankers are near-overflowing with oil, so are the memes on Twitter

What are your views on this? Share in the comments bar below.

 


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