Washington, April 21: The US benchmark crude oil prices sank to such extent on Monday, April 20, falling below $0 a barrel for the first time in the history as the novel coronavirus outbreak has hit the demand. At the start of the year 2020, a barrel of West Texas Intermediate (WTI) cost around $60. The decline in prices was driven by a trading contract deadline. US Oil Prices Collapse to $11 as World Markets Stay Awash With Crude Amid Coronavirus Pandemic With Less Demand.

After beating the record low multiple times, West Texas Intermediate (WTI) for May delivery continued to sink to the unheard of price of a penny a barrel, before inching up to -$37.63 at about 1845 GMT in New York.

WTI lost over 100 percent today with prices of oil for delivery next month descending to lowest ever benchmark. The negative turn means that producers would be paying to the buyers to take their oil in order to prevent the shutdown of their fields.

A price war between Saudi Arabia and Russia had hastened the slide prior to the production deal, bothering the United States shale producers. And storage capacity is becoming scarce in the US, with the main WTI facilities in Cushing, Oklahoma filling up.

Watch: Oil Producing Nations Led By Saudi Arabia & Russia Hammer Out Deal, Receive Praise From Donald Trump.

Amid the turmoil on oil markets, Wall Street was trading lower, with the Dow down 1.3 per cent to 23,930.97.  The S&P 500 lost 0.8 percent to 2,851.58, while the Nasdaq fell 0.1 percent to 8,641.94. The shares of the oil company saw a major downturn with ExxonMobil down 3.2 percent and Chevron losing 1.8 percent.

(With AFP Inputs)

(The above story first appeared on LatestLY on Apr 21, 2020 12:08 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).