US crude prices bounced back into positive territory Tuesday, a day after crashing below USD 0.00 for the first time owing to crippled demand and a storage glut, while the commodity rout sent equities sharply lower.
Investors were also tracking developments in North Korea following US reports that Kim Jong Un had undergone cardiovascular surgery earlier this month and was in "grave danger".
West Texas Intermediate for May delivery rose to USD 1.10 a barrel after diving to an unprecedented low of -USD 37.63 in New York as the pandemic brings the global economy, transport and factory activity to a halt.
However, it later eased back to sit 30 cents higher.
The sell-off in May futures came because the contract expires later Tuesday, meaning traders needed to find buyers to take physical possession of the oil -- a job made near-impossible as storage becomes scarce.
However, focus is now on the June contract, which had trading volumes more than 30 times higher. That rose towards USD21 a barrel, from USD20.43 on Monday.
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Brent crude, the international benchmark, was changing hands at USD23.87 for June delivery, down from Monday.
The collapse in WTI "was driven by a precipitous drop in demand caused by the market expectation that the US lockdown could continue into May", said Tai Hui at JP Morgan Asset Management.
"This isn't surprising, given flights are grounded and people are driving much less for work and leisure. If the economic reopening takes longer than expected, we could see pressure further out in the futures curve."
He added that firms were still churning out oil because stopping output "is not feasible for some producers since it could permanently damage their oil fields. Hence, giving their oil away for one month could still make sense in the long run."