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Thursday, June 04, 2020

It’s raining memes online after crude oil prices fall below $0 a barrel

People on social media started comparing the price of one barrel of oil against other everyday items. Many pointed out that a barrel of oil is now cheaper than a roll of toilet paper or Netflix subscription.

By: Trends Desk | New Delhi | Updated: April 21, 2020 7:50:44 pm
oil prices, crude oil price, US market oil crash, oil prices crash, viral news, indian express With huge drop in demand amid the pandemic, the crude oil prices have dropped significantly.

US oil markets created history Monday when prices of West Texas Intermediate (WTI), the best quality of crude oil in the world, fell to “minus” $40.32 a barrel in New York. Not only is this the lowest crude oil price ever known — according to Bloomberg, the previous lowest was immediately after World War II — but also well below the zero-mark. (Read our explainer on why that happened)

With nations around the world implementing lockdowns and a drastic fall in the consumption of oil, producers around the world have continued to pump oil causing causing a fire-sale among traders who don’t have access to storage. At this price, the seller would be paying the buyer of crude oil $40 for each barrel that is bought.

People on social media started comparing the price of one barrel of oil against other everyday items. People said a barrel of oil is now cheaper than a roll of toilet paper or a Netflix subscription, and the hashtags #OilPrices and #CrudeOil dominated social media trends.

Here’s how people reacted to the news:

However, the crash in crude futures prices won’t necessarily translate into a crash in prices at the gas pump, said Tom Kloza, a veteran analyst with Oil Price Information Services.

“I think it’s more inside baseball,” Kloza said. “We’ll continue to see gasoline prices, diesel prices and jet fuel prices drift lower into May but one shouldn’t conclude that we’re going to see fuel given away or that we’re going to match these incredible, unprecedented drops we saw in crude oil today,” Kloza told Reuters. 

 

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