London (CNN Business)The spectacular collapse in oil markets is showing no signs of easing, as the coronavirus crisis saps demand and producers run out of places to store all their excess barrels of crude.
What's happening: US oil prices plunged 78%, falling as low as $4.04 per barrel Monday. That's the lowest level since NYMEX opened oil futures trading in 1983.
The selloff can be attributed in part to market mechanics. The May futures contract for West Texas International, the US benchmark, is about to expire. Most investors are already focusing on the June contract, thinning out trading volume and feeding volatility, UBS analyst Giovanni Staunovo told me.
The June futures contract for WTI is trading just above $22 per barrel, but that's still more than 10% down on the day. Brent crude futures, the global benchmark, fell 3.8% Monday to $27 per barrel.
CNN
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