Asian markets are in negative territory Tuesday as the shockwaves from Monday’s historic drop in U.S. crude oil prices continues to reverberate.
Japan’s Nikkei index closed at 19,280.78, a drop of 1.9%, or 388 points, while the benchmark indexes in Australia, Hong Kong and Taiwan were both trading more than 2% lower in late afternoon trading. Shanghai’s index was 1.3% lower late Tuesday.
In oil futures trading, the U.S. benchmark West Texas Intermediate crude oil was trading at $1.36 per barrel, providing a welcome relief for investors who saw the price plunge to $-37.63 per barrel on Monday, the first time in history the price of U.S. crude has dropped below $0 per barrel.
Economic activity has ground to a halt worldwide amid the coronavirus pandemic, wiping out demand for gas and causing such a massive glut of oil that producers may have to pay their customers to take the excess supply off their hands.
Meanwhile, international benchmark Brent crude was trading at $25.24 per barrel, a loss of 1.2%.
