It’s no secret that oil prices are at some of the lowest values we’ve seen in years. But for one oil buyer from North Dakota, the commodity is so worthless, that it is requiring sellers to pay them to take a certain type of low-quality crude oil off their hands. America has finally reached the point of negatively priced oil.
Flint Hills Resources LLC has listed its price for North Dakota Sour at -$0.50. The company actually expects to receive $0.50 when they “purchase” a barrel of the high-sulfur crude oil. Flint Hills Resources serves as the refining branch of billionaire brothers Charles and David Koch.
Just one year ago, a barrel of North Dakota sour cost $13.50. In January of 2014, it cost $47.60. The current negative price reflects the lack of pipeline capacity for this particular variety of ultra-low quality crude oil.
Still, even if the…
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