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Crude oil prices were under pressure as weak economic data weighed on sentiment, per ANZ Bank.

Key quotes

“Signs of deep US recession emerged with retail sales and factory output down sharply. However, the outlook looks grim with the New York Fed’s manufacturing index falling to -78.2.” 

“Sentiment was helped after the IEA said that global oil demand will probably fall 9% in 2020 and that storage tanks will probably fill by mid-year.”

“WTI prices regained some of the losses after news emerged of a US plan to pay producers to leave oil in the ground. The Energy Department has drafted plans to compensate companies for sitting on as much as 365mbbl of oil reserves.”

“It’s clear to the market that the recent OPEC+ supply agreement will only limit the worst of the damage that restrictions on people’s movement is having on demand.”