Subscribe to ForumIAS

How can oil barrel prices be negative?

@77pritamdash got it. Thanks.


4.3k views

houndsaid

We can buy all that only if we get paid for buying oil. But, we wouldn't get paid.

The negative price for oil would be for oil storing and using companies and not retail consumers. The retail people get oil through channels of storage companies only, but, since they already purchased it for a price and are full, they would like to offset that price from us before buying anymore. If they are able to use reservoirs/inventories before oil prices increase, they and hence govt. might see a slight drop-down in prices and its upto govt. to pass it on to us or not. (Slight as using oil would derive oil demand up and hence prices automatically)

That was detailed. Thanks

6.1k views
Write your comment…