The West Texas Intermediate for April delivery decreased 1.75 U.S. dollars, or 6.1 percent, to settle at 26.95 dollars a barrel on the New York Mercantile Exchange, while Brent crude for May delivery was down 1.32 dollars, or 4.39 percent, to close at 28.73 dollars a barrel on the London ICE Futures Exchange.
Market participants were anxious about significant downside risks to oil demand amid the coronavirus fallout.
Meanwhile, there is still sign of a price war on the oil market, as Saudi Arabia and Russia - the two major oil producers - are making no attempt to reconcile their differences, experts noted.
Given that demand is declining at the same time as a result of the increasingly drastic restrictions aimed at combating coronavirus, the behaviour of the world's two major oil producers can be described as "a wanton act of self-destruction," Carsten Fritsch, energy analyst at Commerzbank Research, said in a note Tuesday.
Failure to strike a deal earlier this month between the Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia, about oil production cuts, had sparked fears of a possible price war.
Saudi Arabia, a key OPEC member, and Russia have already announced a significant increase in oil production.
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