Social Distancing is Causing Crude Oil to Oversupply.
It’s historic day for mankind where crude oil futures’ price dropped to negative for the first time.
The situation have arisen whereby Oil Futures are closing on its contract exercise date whilst global commuting was limited for several weeks due attempt to stop COVID-19 pandemic. Normally, there are two parties involve in Crude Oil Futures trading; Physical Crude Oil Buyer/Seller and Trader/hedge funds. With leaping growth in numbers of latter party to trade equations, when exercise date are closing in and there isn’t a real demand on Crude Oil, causing price to drastically floored because traders haven’t gotten an infrastructure to stock physical oil.
