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The price of oil turned substantially negative in 2020 due to ~50% overproduction, so no, that's not what would happen.

• rcme 3y ago
  The price of oil was negative because no one had any place to store the oil and they absolutely needed to take delivery of it. It’s a very different issue.
  • krona 3y ago
    In other words, there was an oversupply and futures contracts couldn't be fulfilled. Partly due to Saudi and Russia having a disagreement over production cuts in response to the massive demand shock.
    • rcme 3y ago
      No it was a demand shock that caused demand to plummet meaning storage facilities were still full as futures created before the demand shift expired. Basically people bought futures expecting to have capacity to take delivery but then realized they wouldn’t.