US oil prices drop to their lowest level in over 21 years

U.S. oil prices tumbled to their lowest level in more than 21 years on Monday as the coronavirus pandemic continues to crush demand.

It comes amid heightened concern that the volume of oil held in U.S. storage is rising sharply, with the coronavirus crisis compounding the problem by dramatically reducing consumption.

Meanwhile, international benchmark Brent crude stood at $26.63 on Monday, around 5% lower for the session.

Earlier this month, analysts at Goldman Sachs warned that the coronavirus shock was “extremely negative for oil prices and is sending landlocked crude prices into negative territory.”

The U.S. investment bank said it expected waterborne crudes like Brent to be far more insulated from the coronavirus shock, with prices likely to remain near cash costs of $20 a barrel — albeit with temporary spikes below.