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Negative pricing

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In economics, negative pricing can occur when demand for a commodity drops to an extent that suppliers are prepared to pay others to take it away, in effect setting the price to a negative number. This phenomenon is usual for garbage, but has also occurred in electricity prices [1], natural gas prices [2], and oil prices [3][4].

References

  1. ^ "Power Worth Less Than Zero Spreads as Green Energy Floods the Grid". Bloomberg. 2018-08-06.
  2. ^ "U.S. natural gas prices turn negative in Texas Permian shale again". Reuters. 2019-05-22.
  3. ^ "One Corner of U.S. Oil Market Has Already Seen Negative Prices". Bloomberg. 2020-03-27.
  4. ^ "Hundreds of US oil companies could go bankrupt". CNN. 2020-04-29.


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