The drop in oil prices to below zero marked an unprecedented moment in financial history, occurring largely due to a convergence of two major factors. First, the COVID-19 pandemic had led to widespread economic shutdowns around the globe, drastically reducing the demand for oil as travel ceased and industries grounded to a halt. According to reports, the demand for oil dropped by an estimated 30% during the peak of the pandemic. Meanwhile, a simultaneous price war ignited between Russia and Saudi Arabia raised the stakes further. Both nations, vying for market share, flooded the market with oil, leading to a dramatic oversupply that exacerbated the existing crisis.As storage facilities reached capacity due to the overwhelming supply and a lack of buyers, West Texas Intermediate (WTI), the U.S. oil benchmark, plummeted, closing at negative $37.63 a barrel on April 20, 2020. In practical terms, this meant that producers were paying traders to take oil, as they could not afford to keep pumping it without the ability to store it. This phenomenon shocked financial analysts and economists worldwide and prompted discussions about the state of the global oil market, the role of OPEC and other oil-producing nations, and the implications for financial markets more broadly.The effects of this extraordinary event rippled through dozens of sectors, impacting everything from gas prices at the pump to the fiscal health of oil-dependent economies. Many companies in the energy sector faced bankruptcy, and jobs were lost, leading to scrutiny over the viability of traditional oil production moving forward. The event was seen by many as a striking indication of how quickly and drastically global economies can be impacted by interconnected crises.