Yesterday past midnight (GMT+8) on Tuesday (21 Apr), oil barrels traded for crazy prices of under US$0/barrel, as demand waned despite President Trump’s attempt to barter a new deal with OPEC.
As prices continued to plummet, the lowest recorded figure was -US$37.63/barrel (S$53.48/barrel), reports CNN. People are paying you $53.48/barrel to take them away!
So if you’re wondering, why the oil price suddenly drop? With the lockdown in US, travel is limited and more and more people stay home. With this the demand for oil is reduced. And due demand shortage, the oil storage companies have no space (& limited resources) to store oil, hence they are willing to pay someone else to take it from them.
This Covid-19 pandemic has really brought a new horizon where this is unprecedented and nobody have seen this before.