The world has been shocked by a massive drop in the price of American oil – to below $0 a barrel.
-The price went as low as -$40,32 barrel on Monday. That means oil traders were paying to get oil off their hands. International prices then fell too, to an 18-year low on Tuesday
-The demand for oil has collapsed because of coronavirus lockdowns across the world. There is also very little storage available
-In Africa, countries like Angola and Nigeria which depend on their oil production will be hit first
-In SA, the fuel price will come down, so good news in the short term
-Besides that, it is too early to say. Some other prices which depend on transport should come down, but businesses are hurting so much they will probably keep prices as high they can.