Why Did Oil Prices Drop Below Zero So Rapidly?
“Why did oil prices fall below zero on April 20th, 2020?”
On April 20th, 2020, prices for West Texas Intermediate oil, the U.S benchmark, dropped below zero for the first time ever! This was caused by the fact that holding excess oil has become more and more expensive in the wake of the coronavirus and that investors did not believe that the new production cut signed on by Saudi Arabia and Russia would be effective in curtailing supply imbalance, causing prices to shoot negative. This is Why Did Oil Prices Dropped Below Zero So Rapidly.