Price of Oil Drops Below Zero in Record Low

For the first time ever, the price of crude oil dropped below zero dollars. Just a few weeks ago, OPEC+ decided to cut production by an unprecedented 9.7 million barrels a day. That was after the pandemic brought on an extreme lack of demand. President Trump promised the deal would save countless jobs and bring much needed stability to the market. However, the production slash won’t begin until may. As a result, the market has flooded. Yesterday the price dropped into the negatives, as companies were literally paying others to take the product off their hands. It’s believed many oil companies won’t be able to survive this pandemic. During the “good times” they racked up too much debt and now, if this trend continues, hundreds – if not all – oil producers will have to file for bankruptcy. It’s reported oil has since bounced back above $1 but that is not nearly enough to save the industry.