The novel coronavirus pandemic has ushered in many “firsts” in modern economic history. That includes the impact on the oil market, where the benchmark price for U.S.
oil dipped below $0 on Monday for the first time ever. But what does that mean for Canada and its oil-producing provinces? “It really brings home how real the decrease in demand is, how real the oversupply is, how big the price adjustments are going to have to be,” said Andrew Leach, an economist at the University of Alberta.
What went negative on Monday was the price contracts for delivery of West Texas Intermediate (WTI) crude, the benchmark for North American oil prices.