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| From what I have read over the past couple of weeks, oil going negative simply means the cost of extracting and storing the excess oil will cost more than the market pays the producer for the oil. It would be like farmers producing more corn than the consumer will buy so we rent storage. If the price for production and storage is more than the market price for corn, then the price of corn is negative.
Could this happen in oil. Yes. But the oil companies will not pay the consumer to use more oil. A reduction in oil production will occur before long. As stated simply turn off the valves until the glut is used up and prices go up.
Edited by jblands 4/1/2020 12:30
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Negative oil prices
