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Economics

Commodity Markets and Price Volatility

Quick fact

In April 2020, the price of West Texas Intermediate crude oil futures actually went negative, meaning sellers were paying buyers to take oil off their hands because storage was full.

Why this is interesting

You might have noticed that the price of gasoline at the pump can change dramatically from month to month. But why does a barrel of oil, which is a raw material, swing so much in price, even when our daily habits remain the same?