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Covid-19: Oil crashes into negative territory for the first time in history

The May US WTI contract fell $55.9, or 306 per cent, to settle at a discount of $37.63 a barrel after touching an all-time low of -$40.32 a barrel

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Physical demand for crude has dried up, creating a global supply glut as billions of people stay home to slow the spread of the novel coronavirus

Reuters New York

5 min read Last Updated : Apr 21 2020 | 3:24 AM IST

US crude oil futures collapsed below $0 on Monday for the first time in history, amid a coronavirus-induced supply glut, ending the day at a stunning minus $37.63 a barrel as desperate traders paid to get rid of oil.

Brent crude, the international benchmark, also slumped, but that contract was nowhere near as weak because more storage is available worldwide.

While US oil prices are trading in negative territory for the first time ever, it is unclear whether that will trickle down to consumers, who typically see lower oil prices translate into cheaper gasoline at the pump.

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Topics : Coronavirus Lockdown Oil Prices US crude oil Brent crude Oil demand

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