Worthy Christian News > US News > U.S. Oil Futures Plunge To Below $0 For First Time

U.S. Oil Futures Plunge To Below $0 For First Time

By Stefan J. Bos, Special Correspondent Worthy News

(Worthy News) – U.S. crude oil futures plunged to a historic low of below $0 on Monday. Desperate traders paid to get rid of that fossil fuel amid a coronavirus-induced lack of global demand.

Under President Donald Trump, the United States passed both Russia and Saudi Arabia to become the most significant global crude oil producer. But on Monday, the celebration of that trumpeted milestone turned into panic.

Trading ended the day at a stunning minus $37.63 a barrel as investors worried that America is running out of facilities to store the massive oil supplies. With much of the world in lockdown and industries closed due to the coronavirus pandemic, global demand for oil has collapsed,
leading to record surpluses.

Oil is piling up on barges out at sea, and in any nook and cranny, companies can find. Now, traders worry that even this space is running out. On Monday, traders suggested that those who had oil to sell were also willing to pay for it to be taken off their hands.

Oil due to be delivered in June, more reflective of the market’s view on crude’s current value, also fell, sliding 16 percent to about $21 a barrel.

Additionally, investors also express concern that a deal reached on April 12 between the Organization of the Petroleum Exporting Countries (OPEC), Russia, and other producers will not prevent the oil markets from being overwhelmed with a record surge of surplus oil.

While the world moved into a deep recession, it remained unclear whether many consumers will enjoy cheaper gasoline at the pump. As authorities force billions of people around the globe to stay home to slow the coronavirus spread, physical demand for crude has dried up. That’s creating a global supply glut.