Photo Credit: Reuters
Crude oil prices dropped into negative territory for the first time in history. The decline below zero means that sellers are effectively paying buyers to take the oil off their hands.
"It’s like trying to explain something that is unprecedented and seemingly unreal," oil experts said.
The price currently reflects the May contract, rather than the June contract—which is far more reflective of the WTI price as a whole.The gap between May and June, which was at least $60/barrel, was the largest gap between two back-to-back month contracts ever seen, Bloomberg reported—reflecting that the market is dramatically weaker in the near term than it's expected to be later on in the year.