Oil market in turmoil as price falls below zero
By ELAINE KURTENBACH AP Business Writer
BANGKOK (AP) — The market for U.S. crude oil is in turmoil, with one contract trading below zero. Collapsing demand for fuel due to the pandemic has created a glut of oil, with storage capacity running short. The cost to have a barrel of U.S. crude delivered in May was at negative $7.40 per barrel Tuesday, after plunging to negative $37.63. Traders are paying about $16 per barrel for U.S. oil to be delivered in June. Analysts consider that to be closer to the “true” price of oil, and it is the lowest in decades. The volatility is hurting stock markets, which are down around the world and expected to drop on Wall Street when trading begins.