oil rigAP Photo/Matthew Brown

  • Oil prices plummeted to a 21-year low on Sunday evening as uncertainty mounted around storage of excess supply.
  • The commodity has continued to fall over the past week, even after OPEC and its allies agreed to a historic production cut intended to backstop prices.
  • WTI crude oil plunged as much as 21% to $14.47 per barrel, while Brent slid 4.2% to $26.91 per barrel at intra-session lows.
  • Watch oil trade live on Markets Insider.

Oil plunged to a 21-year low on Sunday. The commodity’s latest round of sharp selling comes as uncertainty mounts around storage for excess oil. Demand for crude has plummeted since the coronavirus outbreak has frozen activity worldwide.

WTI crude oil plunged as much as 21% to $14.47 per barrel. It later pared losses and traded roughly 15% lower to $15.60 at 9:40 p.m. in New York. Brent crude losses were muted by comparison, with the commodity sliding 4.2% to $26.91 per barrel at intra-session lows.

The price of oil has continued to slide even after OPEC and its allies agreed to the biggest-ever production cut – one intended to backstop prices. Investors remain unconvinced the cuts can offset cratering demand for the commodity as the coronavirus keeps society from operating normally.

Concerns around storage come as near-term WTI crude prices trade at large discounts to longer-dated contracts. That dynamic is playing out amid worry that a key storage hub in Cushing, Oklahoma is nearing capacity, according to Bloomberg.

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