Negative pricing
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"On 20 April 2020, due to excessive demand for storage of the large surplus in production, the price for future delivery of US crude in May had become negative, the first time to happen since the New York Mercantile Exchange began trading in 1983."--Sholem Stein |
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In economics, negative pricing can occur when demand for a commodity drops to an extent that suppliers are prepared to pay others to take it away, in effect setting the price to a negative number. This phenomenon has occurred in electricity prices, natural gas prices, and sour crude oil prices.
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