San Diego News Fix

What happens when the price of oil drops below $0 | Rob Nikolewski

Episode Summary

For the first time in U.S. history, the futures price for domestic crude oil not only dropped to zero, it fell into negative territory.

Episode Notes

Unprecedented times led to an unprecedented event in the energy sector Monday.

For the first time in U.S. history, the futures price for domestic crude oil not only dropped to zero, it fell into negative territory. In essence, buyers paid sellers not to deliver oil because there is no place to store all the crude that has piled up around the world, including California, as the COVID-19 pandemic has decapitated demand.

With no specific timeline in place to lift coronoavirus restrictions, fuel experts say gasoline prices will continue to fall — although there are few drivers in position to take advantage of it — and oil producers in the Golden State say they face an increasingly uncertain future.


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