US crude oil future May contract amid storage issue which is rapidly filling turned negative for the first time on Monday at minus $37.63 per barrel, previously hitting a low of -$40.32 per barrel.
The negative price was primarily as traders paid buyers to take oil from them.
The international benchmark in line also slumped but not to such levels as world over there was more storage space available for the commodity. Brent crude was down by 9% or $2.51 at $25.57 per barrel.
"The storage is too full for speculators to buy this contract, and the refiners are running at low levels because we haven't lifted stay-at-home orders in most states," said Phil Flynn, an analyst at Price Futures Group in Chicago. "There's not a lot of hope that things are going to change in 24 hours."
Demand for crude has withered and so there has been a supply glut as most people remain home to curb Covid 19.
In this wake, refiners are also processing less of crude and so millions of crude has been stored and at some places traders have taken vessels on rent for accommodating this supply.
In the week to April 17, US crude stockpiles have surged by 9% in Cushing i.e. around 61 million barrels, market analysts said, referring a Monday report from Genscape.