US, WASHINGTON (ORDO NEWS) — May futures for WTI American oil fell back into negative territory on Tuesday after falling to almost minus $ 40 in the previous session because of fears that the United States will run out of storage capacity due to an excess of raw materials caused by the coronavirus pandemic.
The price of Brent oil also fell in response to a collapse in demand after a decline in economic activity.
May futures for WTI were trading at minus $ 5.80 per barrel by 14:14 UTC after falling to minus $ 37.63 the day before.
The more actively traded June contract fell 19.6% to $ 16.43 a barrel.
Brent futures fell 17% to $ 21.22.
“The recently agreed production cuts are not very helpful in resolving the global glut problem in the short term,” JBC Energy said.
US oil inventories are expected to have risen by about 16.1 million barrels for the week ending April 17, after a record-high rise a week earlier, a Reuters poll of five analysts showed.
The American Petroleum Institute will publish stock data at 23.30 UTC.
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