US oil prices are back in positive territory on Tuesday after a stunning collapse Monday that saw levels crash below zero, trading at the lowest level since NYMEX opened futures trading in 1983.
US oil futures popped more than 100% -- albeit to trade at just $1.65 a barrel. The May contract for West Texas International, which expires Tuesday, finished regular trading Monday at -$37.63 a barrel.
The June contract, which is now being traded more actively, rose 4.5% to $21.35 a barrel during Asian trading hours, still a troublesomely low number.
The coronavirus pandemic has caused oil demand to drop so rapidly that the world is running out of room to store barrels. At the same time, Russia and Saudi Arabia flooded the world with excess supply. Analysts also attributed Monday's plunge to frantic last minute trading because of the quickly expiring May contract.
"Regardless of what OPEC does, there will be structural demand loss for oil due to less travel," wrote Stephen Innes chief global markets strategist at AxiCorp in a Tuesday research note.
"At a minimum, oil prices will be the last asset class to recover from lockdown."
Futures for Brent crude, the global benchmark, moved slightly lower to $25.39 a barrel on Tuesday.