US oil prices drop below zero for the very first time in history
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Wall Street fell sharply on Monday after US crude futures turned negative for the very first time in history, underscoring the chaos the coronavirus pandemic has unleashed on the global economy.
The S&P energy index tumbled 2.8% following the front-month May U.S. West Texas Intermediate (WTI) contract turned negative - unprecedented ever sold - with sellers offering buyers $37.63 a barrel.
With a lot of the global economy suspended as a result of coronavirus, physical demand for crude has dry out, creating a worldwide supply glut as billions of individuals stay home.
"Oil down is generally good for the rest of the sectors, but you could make the argument that it's so low that it is not good for those who regarding what it's going to do to unemployment and financial growth," said Jake Dollarhide, ceo of Longbow Asset Management in Tulsa, Oklahoma.
At 2:26 pm ET, the Dow Jones Industrial Average was down 1.79% at 23,807.69 points, as the S&P 500 lost 1.27% to 2,838.15.
Source: https://www.thedailystar.net
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