On Monday the US West Texas Intermediate (WTI) crude oil price dropped to approximately -$37 per barrel due to an oversupply and a shortage of storage.
The COVID-19 pandemic has caused a lockdown in most countries around the world, resulting in travel bans.
“Refineries are unwilling to turn oil into gasoline, diesel and other products because so few people are commuting or taking airplane flights”, reported the New York Times.
All leading to a significant drop in the demand for oil. The US is struggling to store its excess inventory and thus the value of the oil delivery in May has decreased.
On what is being called the “New Black Monday” and an “Unprecedented Wipeout” sellers had to pay buyers to take their product off their hands.
However, according to Al Jazeera, “US West Texas Intermediate (WTI) crude for May delivery was up $38.73 at $1.10 a barrel by 01:17 GMT after settling at a discount of $37.63 a barrel in the previous session,” the increase is reportedly due to shifts in attention to oil delivery in June.