There was no respite for the oil market, as the US administration dropped the plan to buy 30mbbl of oil for its strategic reserve, per ANZ Bank. WTI trades at $23.682.

Key quotes

“The Energy Department said it is withdrawing the first part of the plan to purchase 77mbbl for the reserve.”

“Investors continued to fret over the growing concerns of demand destruction due to the pandemic-related shutdowns. Asian demand is falling as India also announced a lockdown for 21 days. This will reduce the oil demand from refiners.” 

“Investors seem worried about running out of storage capacity for oil in a backdrop of falling demand.”