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US crude oil futures traded below zero for the first time in history on April 20, meaning sellers were effectively paying buyers to take barrels. The article explains that the move reflected a dislocated market in which coronavirus demand losses outran available storage.
Negative benchmark prices signal extreme oversupply and storage stress, which keeps energy-linked commodity sentiment weak and adds volatility to fuel-related costs.
ft.comDerek Brower, David Sheppard, Anjli Raval in London, Gregory Meyer in New YorkApr 21, 2020Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
