First time in history, U.S. Oil traded below $0. is it after 1946?

For the first time in history, U.S. oil traded below $0, and at one point in time, it was trading minus $37.63 per barrel yesterday, April 20.  For the oil futures market in the U.S., yesterday was the worst day and considered now by experts as a black day for oil future commodity trading worldwide.

WTI or the West Texas Intermediate, considered to be the benchmark for oil trading from 1946 were allowed to trade below $ 0 for the first time and ended at day's low of -37.63. In tune with yesterday's oil fall, world stocks also fell by 3 %, and today, the Indian markets opened 3 % less than yesterday.

Apart from the coronavirus drying the need for oil, it is the price war between oil suppliers that has triggered this unprecedented fall in the oil barrel prices yesterday. Oil traders now are afraid to take delivery of oil barrels due to this steep fall and are paying out of their pocket for others to take delivery. The recent oil price war between Saudi Arabia and Russia is said to be the primary reason for the oil prices to fall below $0 per barrel. 

The global lockdown due to coronavirus has plunged 30 % need for oil in the market. But yesterday's trading of WTI May futures was more of the technical concept. The May futures expire on Tuesday, April 21, and those who are unable to sell their holdings have to take physical delivery of the oil.

But due to storage problems and costs, many traders were unwilling to take delivery and were even ready to pay for taking physical oil delivery.  Hence the May futures went below the $ 0 mark for the first time.  But the June futures are trading at $ 20, and in the European market also it is trading around $ 26.