A Glut in Oil

<p>Something weird happened last week. It was something that millions of people who have faced years of painful prices at the gas pump never expected: The cost of a barrel of oil dropped into the negatives. Today, we explore why this happened, and what it reveals about the state of the economy. Guest: <a href="https://www.nytimes.com/by/clifford-krauss" target="_blank">Clifford Krauss</a>, an energy correspondent for The Times based in Houston. For more information on today’s episode, visit nytimes.com/thedaily. </p><p>Background reading: </p><ul><li>The bizarre dip in oil prices was based on a<a href="https://www.nytimes.com/2020/04/20/business/oil-prices.html?smid=pc-thedaily" target="_blank"> quirk in the way barrels are traded</a>, one that appears only when the market is “undergoing extreme stress.”</li><li>“I’m just living a nightmare,” one leader of a large petroleum association said.<a href="https://www.nytimes.com/2020/04/21/business/energy-environment/coronavirus-oil-prices-collapse.html?smid=pc-thedaily" target="_blank"> This is a look inside</a> how the pandemic is decimating the oil industry.</li></ul>