European stocks rose slightly on Tuesday as traders assessed continued panic about oil storage capacity during the coronavirus crisis, which has prompted another fall-off in crude oil prices.
June West Texas Intermediate futures (CL=F) were down 18.94% to $10.36 per barrel, as fears grew that an excess in supply could overwhelm storage facilities and force the price of oil futures into negative territory once again.
At $18.88 per barrel, Brent crude (BZ=F) was trading more than 5.5% lower on Tuesday.
The muted open in Europe followed a mixed trading session in Asia.
“Asia markets underwent a rather more mixed and cautious session as further declines in oil prices weighed on sentiment,” said Michael Hewson, the chief market analyst at CMC Markets UK.
“While cautious optimism continued to prevail in equity markets, it would appear that oil markets didn’t get the memo,” said Hewson.
“The sell-off in US crude prices wasn’t helped by the news that the US oil fund would be selling off all its June contract exposure in favour of longer-term delivery contracts in the coming days.”
Futures were pointing to a higher open for US stocks on Tuesday.