Oil prices continued to edge lower on Tuesday, widening the downturn from the previous session amid continued concerns that the global storage of raw materials was running out.

The international Brent variety fell by 3.15%, or 0.69, to 19.30 USD per barrel, while the futures on the US light crude oil WTI wiped out 11.82% to 11.27 USD per barrel.

“WTI’s futures delivery contracts for June are down as real demand levels are well below current production levels and limited storage options”, said Reid Morrison, a consultant at PwC. “Market volatility will be significant as economies try to deal with blockade damage and return to normal”, added he.

Oil prices were under pressure on Monday after the United States Oil Fund announced that it would sell all of its delivery futures in June starting on Monday, in favor of longer contracts.

“This move is recognition of the bleak prospects for the US oil sector in May and June”, said Cailin Birch, an economist with The Economist Intelligence Unit.

With demand diminishing, more manufacturers are announcing cuts in production. But some believe that this will not be enough to cope with the unprecedented decline in demand from the pandemic.

Earlier in April, OPEC countries and their allies agreed to a record production cut of 9.7 million barrels per day. This deal goes into effect Friday. For their part, Exxon and Chevron are among US companies that have announced major production cuts so far.

However, Cailin Birch noted that US oil production would reach a record high in the first quarter of 2020, “filling nearly all of its available storage capacity”.

Prices for the WTI and Brent varieties are heading for their fourth consecutive monthly decline for the first time since 2017.