Why has the oil price tanked? It’s more complicated than you might think
Though the pandemic led to the record low prices, the way the market works has caused the complete collapse
US oil prices fell into negative territory for the first time on Monday, meaning traders were effectively prepared to pay to get rid of the commodity.
Prices for oil deliveries in May fell as low as minus $40.32 (about minus R758), a sign of huge oversupply as the coronavirus pandemic takes its toll on the global economy. It rebounded back above zero on Tuesday.
How could the oil price have turned negative?..