While US oil prices are trading in negative territory, it is unclear whether that will trickle down to consumers, who see lower oil prices at the pump, Reuters reported.
Supply of fuel has been far above demand since the COVID-19 forced an estimated 4 billion people in quarantine.[adrotate banner="313"]
As a result, physical demand for crude has dried up, creating a global supply glut. Actually, because of oversupply, storage tanks for WTI are becoming so full it is difficult to find space.
As such, traders fled from the expiring May US oil futures contract in a frenzy on Monday with no place to put the crude, but the June WTI contract settled at a much higher level of $20.43 a barrel.
The May U.S. WTI contract fell $55.90, or 306%, to settle at a discount of $37.63 a barrel after touching an all-time low of -$40.32 a barrel.
Meanwhile, Brent was down $2.51, or 9%, to settle at $25.57 a barrel.