The United States, US, oil price has on Monday, crashed to a record low, amid a collapse in demand, caused by the coronavirus pandemic.
The US oil futures went to $0 a barrel, the worst level since NYMEX opened oil futures trading, in 1983.
The development came against the backdrop of an 18-year low drop in prices, amid storage challenges.
Analysts said that record output cuts agreed by the Organisation of the Petroleum Exporting Countries, OPEC, and its Allies, OPEC+, are not enough to offset the loss in demand, occasioned by the global downturn.
As factories and machines across the world grind to a halt, demand for oil has nosedived, amid falling prices.
According to Bjornar Tonhaugen, the Head of Oil Markets, at Rystad Energy, the May futures contract for West Texas International, is about to expire, and frantic last minute trading is compounding concerns about how much oil the United States will be able to store, as demand dries up.
This is leading to “large price swings”, he explained.