[The Guardian] Over a barrel: how oil prices dropped below zero

Over a barrel: how oil prices dropped below zero

The price of US crude has gone negative for the first time in history. How did it happen – and what does it mean?

US oil prices turned negative for the first time in history on Monday amid the deepest fall in demand in 25 years. A flood of unwanted oil in the market caused the West Texas Intermediate (WTI), the benchmark price for US oil, to plummet to almost –$40 a barrel after the fastest plunge in history. That meant producers were paying buyers to take oil off their hands.

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