US oil rebounds, back in positive territory

Global oil prices stand at a staggering $75 per barrel and are expected to rise further if the OPEC Plus countries fail to reach a consensus on extending the oil supply deal beyond April 2022. Representative photo

US oil prices rebounded back above zero on Tuesday (April 21), a day after futures ended in negative territory for the first time as a coronavirus-triggered collapse in demand leaves the world awash in crude.

US benchmark West Texas Intermediate for May delivery was changing hands at USD 0.56 a barrel after closing at – USD 37.63 in New York. Space is scarce to store oil amid the current glut, meaning there have been few buyers for the commodity.

The May WTI contract closes on Tuesday, and the contract for June delivery is now more actively traded. That enjoyed a modest increase on Tuesday after heavy falls a day earlier, rising to above USD 21 a barrel.

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