A shortage of storage tanks amid a steep drop in demand is at the heart of the historic plunge in oil prices
Such a steep decline doesn’t necessarily mean that oil has stopped exchanging hands altogether or that there isn’t much value left in the world's most traded commodity. The price of WTI crude for delivery in June is around $21 - still much lower than the $60 price in January.
The below zero price scenario played out in the futures market where actual traders buy and sell oil along with Wall Street investors who try to make money off such a fluctuation. A futures market is where banks and brokers trade commodities such as oil and coffee. Since the price of oil is expected to be higher in June or later when the lockdowns are lifted, and some demand returns, the May contract wasn’t attractive anymore.
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