Crude Oil Futures Trading At Negative Prices For First Time Ever
The COVID-19 pandemic has brought a lot of history into our culture with it's path of destruction. Not just in the medical industry, but in our society, and in our economy.
Today a new low point was reached, as one of the world's biggest commodities reached a record low. The price of crude oil actually fell below zero.
These numbers sent shock waves through the energy industry, but also caused panic across the major stock indexes. This drop has picked up national headlines, causing some who don't even follow energy trading to take notice.
But as The Hill explained, this may only be temporary:
"Prices are expected to rebound Tuesday, however. Oil purchases are made on monthly contracts, a reflection of the time needed to get the product to market. Monday is the last day to purchase oil under the May contract, with bidding on June starting tomorrow."
Earlier this year, oil prices started dropping as market insecurity was brought on by a price war between Russia and Saudi Arabia. But concerns over that price war soon melted away as the COVID-19 pandemic began to take hold. Now the uncertainty caused by the pandemic is doing more damage to the industry than a price war ever could.