The world has experienced one of the biggest mismatches between supply and demand for oil driven by multiple factors including the covid-19 disruption.
This has resulted in substantial reduction of oil prices. Mint explores whether negative oil prices could be a reality 1.
Can oil prices veer into negative territory? The substantial increase in oil supply without requisite demand has disrupted the supply chain because of which the space for storage of oil is filling up.
This could result in a situation where we may not have adequate storage facilities and companies may have to soon pay to get rid of their oil.
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