The price of oil could go negative, what would happen - Business Insider

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The price of oil could go negative — and it means some producers would actually pay people to take their oil.

has cratered global oil demand and ignited a price war between Saudi Arabia and Russia that has caused the price to collapse.

That means that producers might actually pay people to take and store oil for them because it's more costly or difficult to turn off the tap. The last time the price of oil crashed around 2015, some crude oil costs in Canada went negative, said David Doherty, an oil analyst at the research firm BloombergNEF. . "I think we might see that happening going forward," Per Magnus Nysveen, the head of analysis at the research firm Rystad Energy, said.

It has cratered demand for oil. And after negotiations broke down between a group of oil-producing countries known as OPEC Plus and Russia, it also ignited a price war that has flooded supply. As much as the price has already collapsed, analysts like Nysveen say it's yet to bottom out. The floor for Brent is about $15 a barrel, or about half of where it is today, Jason Gabelman, an analyst at Cowen, estimates.

In those cases, the price might go negative, at least at the company level, Nysveen said. That means it would actually be cheaper for producers to give oil away — or pay people to take it off their hands — than it would be to store it themselves.

 

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That would be pretty ridiculous. Not sure how Russia will be able to afford trolls or their military machine since oil is a huge revenue generator.

Would that be the first time in history ?

Hello Nigeria.

Surely switching off the taps would make the most sense or increasing storage facilities

Take oh yeah this my year where the barrels at

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