The price of a barrel of benchmark U.S. oil plunged below $0 a barrel on Monday for the first time in history, a troubling sign of an unprecedented global energy glut as the coronavirus pandemic halts travel and curbs economic activity.
But what do negative crude prices mean in the real world?
Lauren Anthony reports.
Right now a barrel of U.S. oil is worth: Less than nothing.
This week saw the country’s benchmark crude price plunge below $0 for the first time in history.
That's for oil delivered in May, and it's the fallout from a massive global energy surplus.
But what are negative prices, and what might they mean for businesses and consumers?
West Texas Intermediate, or WTI, is the benchmark for U.S. crude oil.
Its price usually varies depending on the balance of supply and demand.
Negative prices suggest investors are willing to pay people to take it off their hands.
That's due to hugely reduced demand as lockdowns halt the global economy.
No one is driving or flying much right now, meaning fuel production far outstrips supply.
The main U.S. storage hub at Cushing, Oklahoma, is almost brimming over with unwanted oil.
(SOUNDBITE) (English) COMMODITY RESEARCH GROUP, SENIOR PARTNER, ANDREW LEBOW, SAYING: "Crude stocks are so high that there's no storage, and there's no storage available at Cushing at any price." So what does that mean for consumers?
Well, they might be disappointed to know that it won't necessarily translate into a bargain at the gas pump.
Experts say its unlikely we're going to see fuel given away, though there will be benefits.
Lower oil prices mean the typical American family could save around $150 a month on fuel purchases.
The price of oil for delivery in June is still trading at close to $20 per barrel.
Experts say that's likely a more reliable guide to the future.
One gainer could be cash-strapped airlines.
Fuel is one of their biggest costs.
Though with most planes still grounded, the benefits may be limited just at the moment.
Another winner might be large consuming nations in Asia such as China and India, which get a chance to to fill up their petroleum reserves at bargain prices.
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