How the Coronavirus Caused Oil Prices to Drop Below Zero

The video discusses the economic impact of COVID-19, starting with its initial effects in China and the global perception of a quick recovery. As the virus spread to Italy, markets began to decline. In March, oil prices fell sharply due to a failed production cut deal between Saudi Arabia and Russia, leading to a super contango. The WHO declared COVID-19 a pandemic, and despite efforts like a Fed rate cut, markets continued to suffer. By April, oil demand plummeted, storage filled up, and U.S. oil prices hit a record low. A global production cut was brokered, but it was too late to prevent the crisis.

How did the global oil production cut affect the market?

What led to the record low of negative oil prices in May?