File photo taken on March 12, 2019 shows an operating oil pump in Luling of Texas, the United States. (Xinhua/Wang Ying)

"The decline in more liquid futures contracts reflects the broader problem we have in the oil market -- severe oversupply in 2Q."

NEW YORK, April 20  -- U.S. oil prices crashed to the negative territory for the first time in history on Monday, fueled by pandemic-related demand shock and oversupply fears.

The West Texas Intermediate (WTI) for May delivery shed 55.9 U.S. dollars, or over 305 percent, to settle at -37.63 dollars a barrel on the New York Mercantile Exchange, implying that producers would pay buyers to take oil off their hands.

It marks the first time an oil futures contract has traded negative in history, according to Dow Jones Market Data. The May contract expires on Tuesday.