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Wall Street drops as U.S. crude crashes below $0

Video credit: Reuters Studio
Published on April 20, 2020 - Duration: 01:34s

Wall Street drops as U.S. crude crashes below $0

Wall Street tumbled on Monday after U.S. crude futures turned negative for the first time ever, with traders forced to pay to unload crude as the May contract expired during a global economic slump unleashed by the coronavirus outbreak.

Yahaira Jacquez reports.

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Wall Street drops as U.S. crude crashes below $0

Stocks on Wall Street fell sharply on Monday amid a historic fall in oil prices.

The price for a barrel of West Texas crude due to be delivered next month turned negative for the first time ever, ending the day at a jaw-dropping minus $37.63 a barrel.

Meaning sellers were willing to pay buyers to have it taken off their hands as storage capacity runs low.

Demand for oil has dried up - creating a global supply glut- as billions of people stay home under government orders.

Loreen Gilbert is president OF WealthWise Financial Service: (SOUNDBITE) (ENGLISH) LOREEN GILBERT, PRESIDENT OF WEALTHWISE FINANCIAL SERVICE SAYING: "We are seeing historic lows in the oil pricing and we are seeing OPEC start to come together and it is an important part of the important economy but right now we have a supply glut.

Hopefully they will be able to come up with a greater plan.

Ultimately what's needed is more cuts so OPEC is going to have to cut more." The stunning drop in oil prices dragged down shares of energy companies Exxon Mobil and Chevron.

Both ended the day down 4 percent.

Year to date, the S&P 500 energy index has lost 45%, by far the worst performer among the S&P's 11 sectors.

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