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Negative oil prices mean producers will pay people to take their oil - Business Insider


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Positivity     46.00%   
   Negativity   54.00%
The New York Times
SOURCE: http://www.businessinsider.com/negative-oil-prices-mean-producers-pay-people-to-take-oil-2020-4
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Summary

For the first time in history, the price of near-term contracts for US crude oil traded negative on Monday, collapsing  to lows close to negative $40 a barrel. Read more: Why the price of oil is continuing to free-fall after a historic supply cut — and when experts think it may finally reach rock bottomOn Monday, the futures contracts for US crude to be delivered in May tumbled, reaching unprecedented lows nearing negative $40. And that can turn prices negative, Nysveen said.In this case, there are also market dynamics at play that sent the price deep into the red.Usually, when people refer to the price of oil they're talking about futures contracts — meaning, the price of oil that will be delivered at a later date.The price that went negative on Monday was for futures contracts to be delivered in May. Those contracts expire on Tuesday. "Then they actually have to pay someone to take that oil." You might be wondering: Why don't producers just shut down the well until prices go back up?Nysveen said it's not that easy.

As said here by Benji Jones