The oil prices have plunged to a more than three-decade low on Monday, crashing to below zero for the time ever
The losses in oil prices came amid falling demand due to the coronavirus pandemic, which is offsetting historic production cuts.
As being reported, WTI crude oil fell as much as 71% to $5.32 a barrel, while Brent slid 7.4% to $26 a barrel at intrasession lows.
There is little to prevent the physical market from the further acute downside path over the near term,” said Michael Tran, managing director of global energy strategy at RBC Capital Markets. “Refiners are rejecting barrels at a historic pace and with U.S. storage levels sprinting to the brim, market forces will inflict further pain until either we hit rock bottom, or COVID clears, whichever comes first, but it looks like the former.”
The price of oil continues to slide even after OPEC and its allies agreed to the biggest-ever production cut — one intended to backstop prices.
The US stocks fell on Monday as oil prices crashed into negative territory for the first time ever, notching record lows in the process.
In New York, West Texas Intermediate for May delivery dropped as low as -$1.98 a barrel, lowest in continuation monthly data charts since 1946, just after World War II, according to data from the Federal Reserve Bank of St. Louis.