The industry’s limited capacity to store excess oil, a crumbling demand due to the coronavirus, and a flooded market due to the Oil Price War mean that some crude oils may start trading at subzero prices, reports The Wall Street Journal.
U.S. crude inventories spiked by a record 19.2 million barrels by the end of the week of April 10, while refining activity hit its slowest point since 2008.
If global production cannot be slowed quickly enough, producers may have to start paying for excess oil to be taken away.