How negative oil prices revealed the dangers of the futures market

How negative oil prices revealed the dangers of the futures market

A historic drop occurred on April 20, when the price of West Texas Intermediate crude dropped by almost 300%, trading at around negative $37 per barrel.. The crash in demand that followed the spread of Covid-19, along with a price war between oil giants Saudi Arabia and Russia in early March spurred the move into negative prices.. The price of oil has steadily recovered, jumping nearly 90% in May and registering the best month on record for WTI.. The crash in demand for oil that followed the pandemic played a major role in the move to negative prices. ". As the delivery date for WTI grew near, investors began a massive sell-off to take the contract off their hands, prompting an unprecedented crash into the negative territory..