Democracy Dies in Darkness

Oil prices extend slide one day after U.S. crude drops below zero; Dow plunges more than 600 points

The commodity’s collapse drives home the stark drop in economic activity caused by the coronavirus pandemic

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April 21, 2020 at 5:48 p.m. EDT
U.S. oil prices plunged to levels not seen since 1999 as demand for crude decreased on April 20 amid the coronavirus pandemic. (Video: Reuters)

A crash in oil prices unleashed by the coronavirus lockdown hammered global stocks Tuesday and opened another battlefront for pandemic-battered economies.

A global oil glut sent prices so low Monday that sellers holding U.S. crude contracts paid buyers as much as $30 per barrel to take it off their hands. The collapse went international Tuesday, with futures prices for the global benchmark, Brent crude, dropping to a fraction of the $50 or so needed for a producer to make money. It was an ominous sign, suggesting that oil markets and the world economy may not stabilize for months.