Oil prices tumbled Monday as U.S. crude oil futures turned negative Monday for the first time in history as storage space was filling up, discouraging buyers as weak economic data from Germany and Japan cast doubt on when fuel consumption will recover.
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.
The May U.S. WTI contract fell $19.06, or 104.3%, to a discount of 79 cents a barrel after touching an all-time low of -$1.43 a barrel. Brent was down $1.85, or 6.6%, at $26.23 a barrel.
Prices have been pressured for weeks with the coronavirus outbreak hammering demand even as Saudi Arabia and Russia failed to reach an agreement to cut supply. The two sides, with U.S. urging, agreed more than a week ago to cut supply by 9.7 million bpd, but that will not quickly reduce the global glut.
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