US oil prices plummet
US oil prices plummet

US oil now worth less than nothing for the first time in history as demand plummets

Incredibly, oil prices dropped below $0 for the first time in history last night as demand for oil plummets due to the Coronavirus pandemic.

How do minus prices work, you ask?

Well, oil producers are literally paying buyers to take their oil from them.

Demand for oil has virtually dried up over the last few months due to global lockdowns. Which in turn means that oil firms need to store their oil on tankers or in huge inland reserves.

So, with no one buying oil and the storage getting full, oil companies are literally giving their oil away. Which means that US oil prices plummets.

Click here for a more in-depth view of how oil prices are calculated. Although we’ll warn you, it’s fairly complicated stuff!

At one point, the benchmark price for US oil fell as low as -$37.63 a barrel.

Yikes!

And, as usual, the Simpsons predicted this before it became a reality. Homer really is always one step ahead…

And to end on another fun note, check out this boxer giving himself a black eye during an Instagram video coaching session!

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