The Idea of Negative Oil Prices Is More Realistic Than You Think
- Traders say prices in some parts of U.S. may drop below zero
- It has happened at least once before, after the last downturn
This article is for subscribers only.
How bad is too bad for oil markets? As prices barrel toward the lowest levels since the start of the century, negative prices have re-entered the realm of possibility.
U.S. oil futures just hit an 18-year low as an oil-price war between Saudi Arabia and Russia rages on, and that has a few traders and analysts wondering whether physical crude prices -- in at least some parts of Canada and the shale patch -- could actually drop below zero. It’s a rare but not impossible feat.