Oil decline continues on demand drop, oversupply

Prices have been swinging wildly as demand for energy collapses and storage tanks come close to topping out

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Oil prices continue to fall as the stay-at-home orders, due to the coronavirus, have shutdown demand.

Benchmark U.S. crude dropped 8 percent or $1.07 to $11.70 a barrel in electronic trading on the New York Mercantile Exchange as of 6:55 a.m. ET.

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It fell $4.16, or 24.6 percent, to $12.78 a barrel Monday.

Brent crude, the international standard, is up 2 percent or 40 cents to $20.39 a barrel.

Prices have been swinging wildly as demand for energy collapses and storage tanks come close to topping out.

Oil posted its worst week in history after West Texas Intermediate crude futures turned negative for the first time in history.

Stay-at-home orders issued by government officials worldwide have removed about 30 million barrels of oil demand from the market each day as nonessential travel has ground to a halt.

OIL PRICES TANK AS STORAGE CAPACITY CONCERNS MOUNT

“There’s a huge oversupply we’ve been left with due to the incredibly sharp drop in consumption,” said Richard Swann, editorial director for Americas oil markets at S&P Global Platts.

Americans staying at home during the coronavirus outbreak has caused demand for gasoline to plummet, bringing the price at the pump lower.

The average U.S. price of regular-grade gasoline fell 9 cents over the past two weeks, to $1.93 per gallon.

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That's according to the latest Lundberg Survey.

The Associated Press contributed to this article.