Oil inventories have been building for weeks after Saudi Arabia and Russia early in March failed to come to terms on extending output cuts as the coronavirus pandemic worsened. Since that time, the pandemic's spread has cut fuel demand by roughly 30 per cent worldwide.
Both Saudi Arabia and Russia said on Tuesday they were ready to take extra measures to stabilise oil markets along with other producers, but they have not taken action yet. Meanwhile, in Texas, however, oil and gas regulators declined to force producers to curtail oil output. The Texas Railroad Commission, which regulates energy companies in that state, had considered intervening in markets for the first time in nearly 50 years.
The main US storage hub in Cushing, Oklahoma, delivery point for WTI, is expected to be full within weeks.