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US Oil prices crash below zero for first time in history

US Oil prices crash below zero for first time in history

Oil prices in the US have crashed below zero for the first time in history.

The historic change in prices comes as demand for energy has plummeted due to the Coronavirus pandemic. The lockdown in many countries around the world has lowered demand for energy and facilities for storing oil are now nearly full.

The negative price means that oil producers are paying buyers to take the commodity off their hands due to fears that storage capacity could run out within weeks, possibly next month. 

Many oil producers have already cut production, but there is still more oil supply than the world can use, due in part to Coronavirus lockdown measures.

The price of US crude oil fell by more than 105% on Monday. In some cases, traders have been paid more than $40 to buy a barrel of oil, according to reports.

 

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