Energy traders bailed out of the expiring May U.S. oil futures contract in a frenzy on Monday, as the contract dropped by more than 70 percent to less than $5 a barrel and opening the widest gap ever between it and the next contract with storage rapidly filling, Reuters reported around midday Jamaica time.

Oil drilling offshore Guyana

The price of West Texas crude that plunged 45 percent to the lowest level in decades with the price hitting US$10.85 this morning plunged further in late morning trading to hit US$5.
On Thursday, the price dipped to close on the world market at US$19.73 from over US$62 in December last year. The fall takes place even as major oil producers agreed to cut production by nearly 10 million barrels a day, effective May.
The news is terrible for oil-producing countries and a huge gift to net importers of the commodity. In the Caribbean, Trinidad and Tobago and Guyana net exporters of the product will be negatively affected, but net importers in the rest of the Caribbean will enjoy a windfall should the low price persist. Jamaica will find the plunge a great gift as it will play a huge role in offsetting the fall in revenues from the tourist trade as at the current price the country would save around one billion per year.
For consumers, the drop means lower fuel prices, electricity charges but the government will see less advalorum taxes on petrol collected.