Anchor: Global oil prices continued to plunge on Tuesday, after U.S. crude futures fell below zero in an unprecedented crash the day prior, reflecting an oversupply amid coronavirus lockdowns around the world. In South Korea, oil refiners are also struggling with a shortage of space to keep their oil as result of the glut. 
Choi You Sun has this report.

Report: Oil prices have nosedived for the second straight day after the U.S. oil benchmark, West Texas Intermediate(WTI), turned negative for the first time in market history.

WTI crude to be delivered in May turned positive to settle at ten dollars and one cent per barrel, after dipping to minus 37 dollars and 60 cents Monday, reflecting the falling energy demand amid the novel coronavirus pandemic.

Crude for June, however, plunged down to six dollars and 50 cents a barrel at one point on Tuesday, before settling down 43 percent at eleven dollars and 57 cents, the lowest in 21 years.

John Kilduff, an energy analyst and founding partner of  investment firm Again Capital, explained that having a glut in the oil supply is what leads to these negative prices.

[Sound bite: John Kilduff, Again Capital Energy Analyst]
"The negative pricing that you saw was a manifestation of the glut conditions in the U.S. oil market. There is vast oversupply and there's so much supply that not only would you not get paid for your oil, you actually had to pay someone to take it off your hands."

Brent crude, the international benchmark, traded below 20 dollars a barrel on Tuesday, the lowest in 18 years and around two-thirds lower compared to prices in January.

In the wake of the unprecedented oil price crash, U.S. President Donald Trump said he instructed his administration to help develop a funding plan for embattled oil producers, and pledged to buy barrels for national strategic reserves.

Last week, oil exporting countries belonging to the Organization of the Petroleum Exporting Countries-Plus(OPEC-Plus) framework agreed to cut oil production by nine-point-seven million barrels per day in May and June.

Analysts, however, say with demand for crude projected to decline by 30 million barrels each day, and the May 19 expiration for the June WTI contract looming, there's a high chance of another price collapse.

[Sound bite: John Kilduff, Again Capital Energy Analyst]
"Basically, this is the equivalent of crude oil producers dumping their oil in the street like dairy farmers do when they overproduce. We are in that much of a glut situation. That's why the price has cratered so much. You literally have to pay someone to take it from you."

South Korea's oil refiners are also struggling with storage issues, and are being forced to incur expenses of some 50 million won a day to store crude in tankers out at sea.

The country's four major refineries are forecast to post operating losses totaling three trillion won for the first quarter.

Industry insiders say the domestic economy will feel the effects of a prolonged oil price collapse in the form of reduced orders for petrochemicals, refined oil, shipbuilding and plant construction by oil exporting nations.
Choi You Sun, KBS World Radio News.