U.S. oil prices remained under pressure on Tuesday, after the June contract saw its second-lowest settlement on record as concerns over a lack of storage for the commodity continued to dog the market.
The front-month June WTI crude fell $1.61, or 12.6%, to $11.17 a barrel after trading as low as $10.07, the lowest for a most active contract since 1986, according to FactSet.
The drop follows a nearly 25% decline on Monday and comes after a 32.3% fall last week, the largest such decline on record for a most-active contract. The now-expired May contract traded in negative territory for the first time in the history of the energy complex.
June Brent crude, the international benchmark, declined by 21 cents, or 0.9%, to $22.86 a barrel, after a 6.8% drop to $19.99 on ICE Futures Europe on Monday. The contract fell 23.7% last week.
Storage capacity around the world is dwindling as economic shutdowns due to the global pandemic has weighed on demand for oil.
Source : Marketwatch