Explained: What is negative crude future and how does it affect consumers?

The price of a barrel of crude varies based on factors such as supply, demand and quality. Supply of fuel has been far above demand since the coronavirus forced billions of people to stop traveling

The price of a barrel of benchmark US oil plunged below $0 a barrel on Monday for the first time in history, a troubling sign of an unprecedented global energy glut as the coronavirus pandemic halts travel and curbs economic activity.

The contract for West Texas intermediate crude, or WTI, is the benchmark for US crude oil prices.

Such a steep drop in the oil benchmark prompted strong reactions beyond trading floors. Here is an explanation of what negative crude prices mean in the real world:

What Does a negative future price mean?

The price of a barrel of crude