Oil prices go negative. What does that mean?

Oil prices go negative. What does that mean? “It’s the worst oil price in history, which shouldn’t surprise us, because it’s the inevitable result of the biggest supply and demand disparity in history,” said Ryan Sitton, commissioner at the Texas Railroad Commission, which regulates the state’s oil industry. The world is awash in oil, there's little demand for it and we're running out of places to put it. That in a nutshell explains Monday's strange and unprecedented action in the market for crude oil futures contracts, where traders essentially offered to pay someone else to deal with the oil they were due to have delivered next month. The price of U.S. benchmark crude that would be delivered in May was selling for around $15 a barrel Monday morning, but fell as low as -$40 per barrel during the day. It was the first time that the price on a futures contract for oil has gone negative, analysts say. “It’s the worst oil price in history, which shouldn’t surprise us, because it’s the inevitable result of the biggest supply and demand disparity in history,” said Ryan Sitton, commissioner at the Texas Railroad Commission, which regulates the state’s oil industry. [Read More]( To stop receiving these emails,[Unsubscribe](