NEW DELHI: Crude oil is trading at negative prices as covid-19 continues to leave many ‘unbelievables’ in its wake. Though negative interest rates became a reality in the developed markets long back, another unimaginable scenario dawned on Monday as crude oil traders prematurely dumped May contracts, a day ahead of the expiry, and were paying the buyers to take their oil.
The pandemic is sure to rewrite the rules of business. May futures of West Texas Intermediate, the US crude, traded 140% lower from their previous day’s prices at minus $7.31 per barrel on New York Mercantile Exchange.
June futures contract fell 12% to $22.05 a barrel, stretching the spread between the two months’ prices to more than $27. Before that, a trader paid in