Oil Prices, The Constant Changes In Demand And The Benefits That Come With It.
The oil market is facing unprecedented times. The Covid-19 spread is majorly the factor for this occurrence. It has seen the prices of oil in the U.S market fall to a negative. You may ask yourself what this means. This means that oil producers are now paying buyers to take the oil off their hands. How tables have turned! This has never happened in history and is mainly attributed to the rise in supply without a corresponding increase in demand. This has been occasioned by the lockdown experienced in many parts of the world. This has seen oil producers renting tankers to store this excess supply and thus the prices have fallen from an initial high to an all-time low of negative $37.63 a barrel.
Source Bloomberg.com
