ASX sinks as oil futures turn negative

The Australian share market has followed Wall Street lower after US crude oil futures turned negative for the first time amid a coronavirus-induced supply glut.

The S&P/ASX200 benchmark index was down 27.7 points, or 0.52 per cent, to 5,325.3 points in the first 15 minutes of trade on Tuesday, with energy stocks the heaviest weight at the open.

The All Ordinaries index was down 30 points, or 0.55 per cent, to 5,384.7 points.

US crude oil futures collapsed below $US0 on Monday for the first time in history, ending the day at minus $US37.63 a barrel as desperate traders paid to get rid of oil.

Brent crude also slumped but was nowhere near as weak as more storage is available worldwide.

The Australian dollar was buying 63.34 US cents at 1015 AEST, down from 63.62 US cents at Monday’s close.

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