Crude oil futures declined on Monday while U.S. futures fell to its lowest level since 1999. This was on top of concerns about global oil demand and the filling of strategic reserves in the United States.
The oil volume held in U.S. storage rose as refiners slowed down production due to weak demand.
The May WTI, which is due to expire on Tuesday, fell 14%, or $2.62, at $15.65 per barrel. The June contract dropped 5.1%, or $1.28, at $23.75 per barrel.
Brent was down 0.8%, or 21 cents, at $27.87 per barrel.
The decline in crude oil prices shows the oversupply in the main U.S. storage facilities, said chief market strategist Michael McCarthy at CMC Markets in Sydney.
The 9.7 million bpd production cut agreed by OPEC and its allies including Russia will materialize in May.
The oil industry has been reducing output to level with demand, which has declined 30% since the pandemic. Officials from Saudi Arabia predicted that the total output cut could amount to 20 million bpd.