Oil prices plunged on Monday because storage facilities around the world are filling up with crude for which there is no market demand.
This is a direct fallout of the lockdown on the global economy occasioned by the rampaging COVID-19 pandemic.
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WTI crude oil plunged as much as 39% to $11.20 per barrel, while Brent slid 6.6% to $26.23 per barrel at intrasession lows.
Few minutes, the futures contract for West Texas Intermediate lost $6 US per barrel, going to $11.66 US, the lowest level since 1999.Â
The price of oil is plunging because thereâs very little demand for it, and oil companies are running out of places to store it.Â
Storage tanks at the U.S. hub of Cushing, Oklahoma, are now holding 55 million barrels of crude, which is their highest level since 2018.
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