US Oil Prices Fall Below Zero

US oil prices in the futures market in New York ended in the negative on Monday for the first time ever as a supply glut forced traders to pay others to take the commodity.

The sharp fall came amidst worries of storing oil, which led to the US benchmark West Texas Intermediate for May delivery ending at -$37.63 a barrel. There are serious worries over storing oil, with investors unwilling to take delivery.

The fall came despite a deal between Organization of the Petroleum Exporting Countries (OPEC) and independent producers, who agreed to cut output by nearly 10 million barrels per day starting May to boost prices.

The globe is awash with oil, but, consumption by refineries is poor, given that in many countries there is a lockdown and hence no demand for fuel.

Prices are expected to remain depressed in the days to come.