International Crude Oil Prices Enter Negative Territory... Daily Drop of 300% (Comprehensive)

[Image source=Reuters Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] International oil prices have entered negative territory for the first time in history. This means that sellers must pay buyers to take the crude oil.

As of 2:40 PM on the 20th (local time), May delivery West Texas Intermediate (WTI) crude oil futures on the New York Mercantile Exchange are trading at -$35, down 300% from the previous day.

However, unlike the May contract which expires the next day, June WTI futures are trading around $20, down 19%. This means that while the value of the oil futures expiring the next day implies sellers must pay buyers $35, the price outlook for one month later is around $20.

Bloomberg News reported that this is the first time in history that international oil prices have traded in negative territory.

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