US crude oil prices rebounded above zero on April 21st, 2020, a day after futures ended in negative territory for the first time in the history as the novel coronavirus pandemic induced lockdown has paralysed the world economy.
The West Texas Intermediate (WTI) crude prices, the benchmark for US oil rates, had slid below the $0-a-barrel mark in a first on April 20th, 2020.
Oil markets have plunged in the last few weeks as lockdowns and travel restrictions were strictly imposed to contain the spread of the highly contagious virus.
The fall highlighted an unprecedented global supply glut and intense disruptions globally, as the travel and economic activities came to a halt following the COVID-19 outbreak.
The crude oil price is determined by factors such as demand, quality and supply. A negative closing means that the producers are paying traders to take the oil off their hands.
Due to the oversupply, the storage tanks for WTI are becoming so full that it became difficult to find space.
The US Energy Information Administration had said that the storage at Cushing, Oklahoma, the heart of the US pipeline network, was about 72 per cent full as of April 10th, 2020.