On Tuesday, the international benchmark Brent crude oil futures posted an increase but the US WTI went down.
Brent was up by 2.3% or 47 cents to settle at USD20.46/barrel after plunging by 25% on Monday.
On the contrary, the US WTI crude oil future was down by 3.4% or 44 cents to settle at USD12.34/barrel after also slumping by 25% on the previous day.
Brent futures were supported by the expectations that demand would recover after some countries announced the easing of economic and social activities’ restriction due to the coronavirus pandemic.
The WTI was likely affected by the data of US crude oil inventory on Tuesday. The American Petroleum Institute showed that the country’s crude stockpiles rose by 10 million barrels to 510 barrels in the week to April 24.
Also impacting the WTI was consultancy Kpler’s data that the global storage onshore, as of last week, was expected to be around 85% full.
Shipping sources said that the industry is now so in a dire need of storage that oil traders are hiring expensive US vessels to store gasoline or ship fuel abroad.
Russian Energy Minister Alexander Novak predicted there is only a slim chance that crude prices would significantly go up in the near future as even when the output deal of the Organization of Petroleum Exporting Countries and its allies (OPEC+) take effect on May 1, the high level of global storage would still burden the market.
Economist Jim Ritterbusch of Ritterbusch and Associates said that the global market would require more output cuts in the coming weeks before a price bottom can be considered.
Meanwhile, US shale producers who have cut output are getting in legal issues with their services companies over the purchase deals’ terminations.
