The price of US oil has turned negative for the first time in history. Producers are paying buyers to take oil off their hands over fears that storage capacity could run out in May. Here are seven reasons why the oil price is crashing and why it matters to you.
It may be unprecedented for oil producers to pay commodity traders to take crude off their hands, but the supply and demand dynamics which forced West Texas Intermediate (WTI) prices into negative territory are standard fayre. Events from history can therefore teach us a lot about what we might expect next from oil prices.
London oil and gas companies felt the impact of the price drop, even if not many are directly affected by the negative pricing. Mark Robinson and Alex Hamer examine the price fall and its impact on listed companies in this article.