Negative Prices: Not A New Phenomenon

Negative prices for oil have caused a sensation in the last few days. The price of a barrel of West Texas Intermediate (WTI), the benchmark for US oil, fell to -$37.63 USD per barrel earlier this week. However, the concept of negative prices is by no means new. In several sectors of the economy, negative prices have existed for years, meaning that it is not the seller, but the buyer of a product who is paid.