Tuesday, April 21, 2020

Negative Oil Prices

In the wake of a drop-off in the demand for oil, prices went negative for the first time in history. What does this mean? Like any asset, the price of oil is driven by supply and demand. With high supplies and effectively no demand, suppliers are now having to pay users to take oil off their hands since they have too much and nowhere to store it. In fact, on April 20, some oil prices actually closed at -$37.63. So, if you have any place to put it, you could get paid to takes some oil. See article here, Forbes.