Oil falls as world's limited storage tanks fill up amid demand shock

Oil prices slumped this morning, extending the previous session's slide, on worries about limited capacity to store crude worldwide and expectations that fuel demand may only recover slowly as coronavirus pandemic restrictions are gradually eased.

WTI crude futures skidded by as much as 16per cent and were off 14.7%, or $1.88 cents, at $10.90 a barrel as of 0158 GMT. WTI plunged 25% on Monday.

Brent crude futures fell to a low of $18.97 and were last down 4.1%, or 82 cents, at $19.17 a barrel. The benchmark slid 6.8% on Monday, and the contract for June delivery expires on April 30, Reuters reported.

Strategists said part of the WTI decline is due to retail investment vehicles like exchange-traded funds selling out of the front-month June contract and buying into months later in the year to avert massive losses like last week, when WTI plummeted below zero.