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20 April 2020updated 06 Oct 2020 9:45am

US oil prices reach record low as coronavirus causes massive dip in demand

By Rohan Banerjee

Pump jacks draw crude oil from the Long Beach Oil Field in Signal Hill, California, on March 9, 2020. – Global stocks and oil prices rebounded on March 10, 2020 on hopes of US economic stimulus efforts as the coronavirus rages, one day after suffering their biggest losses in more than a decade. Trading is exceptionally volatile as investors attempt to get a grip on a rapidly changing news flow, with positive reports of progress in China on the virus clashing with a Saudi decision to increase oil output in an already over-supplied market. (Photo by DAVID MCNEW / AFP) (Photo by DAVID MCNEW/AFP via Getty Images)

The US oil market has turned negative for the first time in its history, as stockpiles have overwhelmed storage space.

The price of US crude oil fell by more than 105 per cent to -$2 per barrel, causing producers to pay buyers to take the oversupply.

Widespread lockdowns and social distancing measures are in place across US cities due to the coronavirus pandemic, which has led to an unprecedented fall in demand.

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