US Crude Oil Prices Fall To Negative For The First Time!

US Crude Oil Prices Fall To Negative For The First Time!

For the First time in the history of US Crude oil, the prices dropped to more than 100 percent to fall into negative prices, due to lack of demand. The crude oil futures contracts expiring on Tuesday turned negative, which means the sellers have to pay someone to take the oil off their hands.

West Texas Intermediate crude for May delivery has fallen to -$37.63 per barrel and Brent Crude for its June contract traded a little better at $25.58 per barrel. The Oil futures are the worst hit as it is set to be delivered when most parts of the country are shut down due to coronavirus lockdown. Usually, the refineries or an airline would by the oil futures for the contract, but given their tanks full and the lack of demand emerged, the prices had to see the negative for the first time.

There seems to be no relief for oil in the near future as there is still a lot of crude on the water. This remains one of the biggest blows to the economy as it made the demand for oil fall to unexpected levels. The coronavirus caused the supply-demand imbalance across the globe and it has turned the tables with no demand and continuous production.