On April 20th, the effects of the pandemic and a price war between Saudi Arabia and Russia forced oil prices to sink below zero and into the negative territory for the first time in history. The unprecedented loss put countless retail investors and the American economy under a great financial risk. Although experts suggest it is unlikely to happen again since oil prices recorded its best month yet in May, it gives a glimpse into the inner workings of the oil trade industry and the dangers of the futures market.

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Why Oil Prices Can Turn Negative