US benchmark Nymex WTI crude futures fell by 21pc to just above $10/bl in Asian trading, extending losses from the previous session after the US Oil Fund (USO) decided to exit the June WTI Nymex contract.
At 08:30 GMT the Nymex front-month June crude contract was at $10.10/bl, lower by $2.68/bl from its close at $12.78/bl yesterday when the contract fell by $4.16/bl. The contract earlier dipped as low as $10.07/bl.
The Ice front-month June Brent contract was at $19.00/bl, down by 99¢/bl from its settlement yesterday when the contract ended $1.45/bl lower.
The USO, one of the largest exchanged-traded products, announced on 27 April that it was exiting the June WTI Nymex crude futures contract because of "evolving market conditions."
The USO said it would take three days to roll the current crude futures portfolio investments into the new positions, starting yesterday.
More gloomy economic indicators also kept prices under pressure. The Dallas Federal Reserve's Texas factory production index plummeted in April in reaction to Covid-19-related lockdowns, with measures of new orders, capacity utilization and capital expenditures all falling to record lows.
BP swung to a loss in the first quarter and its net debt jumped as oil prices crashed towards the end of the period and the Covid-19 pandemic slashed global oil demand.
Two of Argentina's refineries have halted crude processing, while most of the others have slashed throughput in response to the oil demand collapse and supply glut.
But price losses were stemmed by the prospect of an increase in demand. South Korean refiner S-Oil said it has no plans to cut fuel output, even after posting the largest loss in its history amid an unprecedented collapse in oil product demand.
Brazil's state-controlled Petrobras plans to increase oil and fuel production this month after observing stronger-than-expected demand in the face of the Covid-19 pandemic.
The Dubai Mercantile Exchange front-month June Oman crude futures contract was at $16.82/bl at 4.30pm Singapore time, down by $2.63/bl from its price at the same time yesterday.
