Oil plunges 321% into negative territory for the first time ever as demand evaporates
- Oil prices plunged into negative territory to a record low on Monday as uncertainty mounted around storage of excess supply.
- WTI crude oil futures expiring in May plunged 321% to close at negative $40.32 a barrel, while Brent slid 9.5% to $25.41 at intrasession lows.
- The coronavirus pandemic has torpedoed demand for the commodity, with fuel use in cars and planes slumping.
- The commodity fallen over the past week even after OPEC and its allies agreed to a historic production cut intended to backstop prices.
- The WTI market has entered contango, meaning spot prices are now lower than prices for future delivery of crude oil, a highly unusual occurrence.
- Follow the price of oil live with Markets Insider.
Oil plunged into negative territory for the first time on record. The commodity’s latest round of sharp selling comes as uncertainty mounts around storage for excess oil. Demand for crude has plummeted since the coronavirus outbreak has frozen activity worldwide.