Oil continued to slide from the previous session on Monday in Asia as producers continue to grapple with a supply glut.
International Brent oil futures dropped 1% to $27.80 by 10:17 PM ET (3:17 AM GMT) and WTI futures slid 5.03% to $23.77 as the May futures contract expires on Tuesday.
Investors remain unconvinced that OPEC+’s cut of nearly 10 million barrels agreed to in early April will ease oversupply as countries continue to extend lockdowns imposed to prevent the spread of the COVID-19 pandemic and economies contract.
“The current prices show that the OPEC+ cuts proved to be a blip, with oil prices at the mercy of the virus once again,” Vandana Hari, founder of Vanda Insights, told Bloomberg. “Until we approach a lifting of the lockdowns in the U.S., the oil may drift lower or remain rangebound around current levels.”
Meanwhile in Asia’s oil hub of Singapore Hin Leong Trading requested court protection from its creditors amid allegations it hid around $800 million in losses from futures trading.