The Chronicles of Major Market Reversals - 6 Case Studies Unfolded

5. The Oil Price Crash (2020)

The oil price crash of 2020 was caused by a combination of an oversupply of oil and a sudden drop in demand due to the COVID-19 pandemic. The price of West Texas Intermediate (WTI), a key benchmark for oil, even went negative for the first time in history. This case study illustrates the impact that external shocks can have on financial markets and the importance of diversifying investments to manage risk.