Fri. Aug 14th, 2020

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US oil prices turn negative as demand dries up

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Demand for oil has all but dried up as lockdowns across the world have kept people inside.

By Yana Mir

The price of US oil has turned negative for the first time in history.

That means oil producers are paying buyers to take the commodity off their hands over fears that storage capacity could run out in May.

Demand for oil has all but dried up as lockdowns across the world have kept people inside.

As a result, oil firms have resorted to renting tankers to store the surplus supply and that has forced the price of US oil into negative territory.

West Texas Intermediary Crude for May delivery shed more than 300 percent to settle at -37.63 USD per barrel at New Mercantile Stock Exchange.

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