Oil prices have crashed into negative territory for the first time in history after coronavirus lockdowns around the world shrank demand.

In the New York Mercantile Exchange, the U.S. benchmark West Texas Intermediate for May delivery plunged to minus 37 dollars and 63 cents per barrel, down 55 dollars and 90 cents from the previous close. 

That means oil producers are paying buyers to take their commodity off their hands as demand has almost dried up amid lockdowns around the world. 

The severe drop prompted more selling on Wall Street, and the Dow closed down two-point-four percent.

The record drop in oil price is partially attributed to a technicality of the global oil market amid the glut. 

Oil is traded on its future prices and May futures contracts are due to expire on Tuesday. Analysts say traders offloaded those holding to avoid having to take delivery of the oil and incur storage costs. 

June prices for Brent Crude, the benchmark used by Europe and the rest of the world, were also weaker, down eight-point-58 percent at less than 26 dollars per barrel.