Oil prices drop to $0 and below

There has been a major drop in demand for oil, with airlines mostly grounded around the world, public and private transport greatly reduced due to lockdowns in many countries, and industrial use also reduced.

This has resulted in a drop of oil prices.

Reuters:  U.S. crude crashes below $0 for the first time in history

U.S. crude oil futures turned negative for the first time ever as billions of people stay home to stop the spread of coronavirus, causing a global supply glut that has led to storage space filling up.

Brent crude, the international benchmark, also slumped, but that contract was nowhere near as weak because more storage is available worldwide.

While U.S. oil prices are trading in negative territory for the first time ever, it is unclear whether that will trickle down to consumers, who typically see lower oil prices translate into cheaper gasoline at the pump.

As billions of people around the globe stay home to slow the spread of the novel coronavirus, physical demand for crude has dried up, creating a global supply glut.

Most prices in Dunedin currently range from $173.9 to $189.9 per litre for 91 and go as low as $100.9 for diesel.