OIL PRICES ARE NEGATIVE: WHAT DOES IT MEAN AND WHAT COMES NEXT
Payne Fellow Alex Gilbert writes that for the first time in history, the primary U.S. oil contract closed at a negative price, an astonishing -$37.63/barrel. This shocking price is a result of the collapse in oil demand due to response measures to the coronavirus pandemic in both the United States and globally. This specific time, negative prices were driven by an unusual circumstance due to an expiring futures contract. However, unless the oil demand situation changes quickly, the U.S. could face single digit or even negative oil prices throughout the summer. April 21, 2020.