Wall Street fell sharply on Monday after U.S. crude futures turned negative for the first time in history, underscoring the chaos the coronavirus pandemic has unleashed on the global economy.
The S&P energy index tumbled 4% after the front-month May U.S. West Texas Intermediate (WTI) contract turned negative - unprecedented in history - with sellers offering buyers $37.63 a barrel.
With much of the global economy suspended due to the coronavirus, physical demand for crude has dried up, creating a global supply glut as billions of people stay home. “What the energy market is telling you is that demand isn’t coming back anytime soon, and there’s a supply glut," said Kevin Flanagan, head of fixed income strategy at WisdomTree Asset Management