This was one of the most absurd crashes in market history
In April 2020, WTI crude oil futures traded at negative prices, collapsing to around -$40 per barrel
Oil wasn’t worthless
Prices went negative due to futures contracts and storage limits
Global demand fell during COVID lockdowns while production remained at the same level, creating a massive oversupply
Storage was basically gone in Cushing, Oklahoma, where WTI futures settle
As the May contract was about to expire, traders still holding their positions would have had to receive real barrels of oil
With no capacity to store it, many were