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Yes. This is not a typo.

It is the first time in the history that oil price is trading at a negative price!

Many of you would have questions about how this can happen and how to buy oil and benefit from it.

Oil price is based on a financial instrument known as futures contracts. A futures contract is a standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future. Futures contracts are traded between producers and buyers all around the world and are crucial for the workings of our economy.

Given that the global economy is pretty much in a standstill due to COVID-19, the demand for oil is expected to be lower than the supply. The world consumption was around 90