What the Oil Price Crash Means for Investors

The falling price of oil has implications for investors in stocks and funds, particularly those focused on energy and emerging markets

James Gard 23 April, 2020 | 10:10AM

Oil price

Oil prices went negative for the first time this week, a move that has rocked the fragile recovery in stock markets since the March sell-off.

While this week's volatility has stemmed from technical reasons relating to commodity derivatives, the moves also relate to the real world: with coronavirus keeping many countries in lockdown, the use of oil products in transport and industry has fallen off a cliff. As a result, storage capacity is approaching its limits in the US. 

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James Gard  is content editor for Morningstar.co.uk

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