The historic drop in price per barrel is a result of overwhelming supply and throttled demand in the COVID-19 lockdown.

The West Texas Intermediate (WTI) closed on Monday night at a record low of -$40.32 (-£32.82) per barrel for May, which continued through to Tuesday.

President Donald Trump has vowed to take action to keep the free falling economy and industry afloat.

He wrote on Twitter: “We will never let the great U.S. Oil & Gas Industry down.

“I have instructed the Secretary of Energy and Secretary of the Treasury to formulate a plan which will make funds available so that these very important companies and jobs will be secured long into the future!”

The WTI price for oil to be delivered next month plunged again to -$6.70 (-£5.45) as European markets opened amid fears there will be no space to store the excess oil.

It resurged to settle at $10.01 (£8.15) yesterday evening amid chaotic trading, but evidence suggests the oil market meltdown is set to continue.

With no buyers in sight and losses on sales, producers are being forced to pay to traders to take oil off their hands.

The contract for May delivery is about to expire, but the price for deliveries in future months has a while before it may turn negative.

Energy Secretary Dan Brouillette told CNBC in an interview that he would meet with Treasury Secretary Steve Mnuchin and White House Economic Council Director Larry Kudlow to discuss how to get more money to oil companies.

Brouillette added that oil executives had told him that banks had “discriminated“ against their companies and made it difficult for them to receive loans.

He said: “We want to ensure they are, to the extent they can be, included.

“We want to make sure they’re not discriminated against. This entire industry needs to come back through this pandemic.”

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Secretary Brouillette also spoke to Republican lawmakers on Tuesday to discuss the plans that already have been rolled out.

A spokesperson for House Republican Whip Steve Scalise said there will be efforts made to protect the oil industry.

He said: “From working with our oil producing allies in North America, to filling up the Strategic Petroleum Reserve, and to ensuring that oil and gas producers have access to the Fed lending facilities created in the CARES Act, the Secretary reaffirmed that all options remain on the table and that President Trump is committed to solving this problem,”

Steve Scalise. along with GOP House Leader Kevin McCarthy and other Republican lawmakers, spoke via phone with secretary Brouillette.

Brent crude oil prices had been largely shielded from Monday’s rout because stores are less likely to fill up and it is easier to load onto tankers.

But it also dropped almost 30 percent to a 21-year low of less than $20 a barrel.

David Winans, a credit analyst at fund manager PGIM Fixed Income, said: “Ultimately, the path for oil prices is going to follow the path of this virus.

“Until demand shows some sign of life, oil prices will likely remain on life support.”

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