Oil prices fell significantly on Monday with the U.S. benchmark down nearly 25 percent amid fears over a growing scarcity of oil storage space.
The West Texas Intermediate for June delivery shed 4.16 U.S. dollars, or 24.56 percent, to settle at 12.78 dollars a barrel on the New York Mercantile Exchange. The prices traded as low as 11.88 dollars earlier in the session.
Brent crude for June delivery dropped 1.45 dollars, or 6.76 percent, to close at 19.99 dollars a barrel on the London ICE Futures Exchange.
Risks on the demand side amid the COVID-19 pandemic fallout have reignited fears over availability of storage capacities, experts noted.
Monday's heavy losses followed extreme volatility on the oil markets in the prior week.
Despite a period of stabilization they have been enjoying since mid-last week, U.S. oil prices posted a record weekly loss of 32.3 percent based on the June contract. It is the biggest weekly percentage loss on record, according to Dow Jones Market Data. June Brent declined 23.6 percent for the week ending Friday.
Editor:Cherie
