Oil futures in NY were little changed on Wednesday after trading in shallow negative territory earlier following a record decline in the first quarter.
AT 9:00 AM ET (1300 GMT), U.S. crude futures traded 0.9% lower at $20.29 a barrel, while the global benchmark Brent contract fell 4.3% to $25.21, with both contracts dropping around 66% since the start of the year.
U.S. crude output fell to 12.7 million bpd in January from 12.8 million bpd in December, the U.S. Energy Information Administration (EIA) said in a monthly report on Tuesday.
Figures released by the American Petroleum Institute showed USA crude inventories rose by 10.5 million barrels last week, far exceeding forecasts for a four-million barrel buildup.
Oil markets have also had to deal with Saudi Arabia and Russian Federation engaging in an all-out price war to secure market share, with the pair failing to agree on deeper supply cuts to support prices. They noted the necessity to respond to existing challenges in the worldwide energy sector, such as the falling demand and oil supply glut, Russia's Energy Ministry said in a statement on Wednesday.
Some experts believe Moscow's target was always the United States and its shale industry, whose oil production has soared since Russian Federation and Saudi Arabia agreed to collaborate on production cuts in 2016. Probably because President Trump still has mixed feelings about crashing oil prices.
"However, in these two markets, final OSPs risk to fall into negative territory, exposing some difficulties of prospective pricing in the current environment".
Oil consumption has collapsed by at least 25% compared to 2019 levels of 100 million barrels per day (b/d), according to analysts at Eurasia Group, with severe restrictions on global movement and most retail in lockdown.
Meanwhile, U.S. manufacturers were chopping operations and pressuring lawmakers to improve suffering companies, and calling for the president to interfere and lend a hand settle the warfare. A glut in an already oversupplied market would nearly certainly hurt the USA shale industry.
The weekly gasoline prices also continued to fall for the ninth consecutive week, and even the price of diesel fuel marked the lowest level at 1,204 won since October 2016, officials said.
Saudi Arabia is due to announce its official selling prices by next week.
With this, investors stand a chance of more than tripling their investments when prices of crude oil rebounds. While most are predicting a crash to 10 dollars a barrel in oil, so far, they are having a hard time staying below twenty.
"We don't want to have a dead industry that's wiped out", Trump said in the interview.