Why Negative Oil Prices Are the Least of the Energy Market's Worries
On April 20, people who watch the oil and gas industry closely experienced something that felt like it was out of a work of fiction. West Texas Intermediate crude prices went negative, as traders rushed to unload contracts for May deliveries that will arrive when the Cushing, Oklahoma hub is expected to be completely full.
On one hand, yesterday's negative oil prices were a worst-case combination of cratering demand, and production being much slower to fall in line.
On the other hand, this isn't just an oddity in the way commodities are traded, but a massive warning signal of structural problems in the oil industry.
Source Fool.com
