(NBC News) -- Oil prices hit a record low Monday, dropping nearly 300%, with May futures closing at negative $37 per barrel.
Due to the economic slowdown caused by the COVID-19 pandemic fewer drivers are on the roads and fewer planes are in the sky, causing demand to plummet. Oil storage facilities are nearing capacity as a result.
The economic impact of low prices may have just started in oil producing states like Texas.
"With the oversupply of crude oil and this price dropping, we are going to see massive layoffs, furloughs, layoffs and potentially the devastation of the oil and gas industry," says Ramanan Krishnamoorti, chief energy officer at the University of Houston.
Producers are hoping for a quick turnaround.
"We hope that it gets back to $30-35 a barrel pretty quickly because that is the only way this industry will survive and we as a state can prosper," Krishnamoorti says.
Read more: https://nbcnews.to/34TA0gJ