New York - U.S. crude prices settled about 3% lower on Tuesday after data showing domestic stockpiles didn’t rise as high as had been expected given tightening storage, despite pledges to cut production from May 1.
Markets were supported on hopes demand would recover after some authorities announced the easing of coronavirus-related restrictions. At least 16 U.S. states looked set to restart business, but Britain said it was too dangerous to relax the lockdown for fear of a second outbreak.
“Demand destruction has leveled off in the U.S., but production cuts have just begun in earnest,” said Phil Flynn, senior analyst at Price Futures Group.”
U.S. West Texas Intermediate (WTI) crude was down 44 cents, or 3.4%, at $12.34 a barrel. The contract plunged 25% on Monday.
Global benchmark Brent crude settled up 47 cents, or 2.3%, at $20.46 a barrel, following a 6.8% slide on Monday.