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US oil prices turn negative for first time in history

US oil prices turn negative for first time in history

The price of United States oil turned negative on Monday for the first time in history.

As a result, oil producers are paying buyers to take the commodity off their stock over fears that storage capacity could run out in May.

According to the BBC report, demand for oil has all but dried up as lockdowns across the world have kept people inside.

And in the wake of the pandemic, oil firms have resorted to renting tankers to store the surplus supply and that has forced the price of US oil into negative territory.

The price of a barrel of West Texas Intermediate (WTI), the benchmark for US oil, fell as low as minus $37.63 (Ksh4, 017.45) a barrel.

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Digital Desk, Metropol TV

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