Should you buy oil right now?

Oil prices have turned negative for the first time in history. But there's more to investing in this commodity than the spot price, warns Morningstar analyst Kenneth Lamont

Kenneth Lamont 29 April, 2020 | 1:23AM

oil

Oil prices have gone negative this week for the first time in history. But what does this phenomenon mean and is a cue for investors to buy the black stuff?

Crude oil prices were more than US$100 a barrel as recently as August 2014. But a double whammy of a global fall in demand because of the Covid-19 lockdown and an oversupply of the commodity by oil cartel Opec has seen prices nosedive.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
United States Oil27.03 USD-3.07

About Author

Kenneth Lamont  Kenneth Lamont  is a passive funds research analyst for Morningstar.

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