Oil ends March with biggest losses in history

NEW YORK — Crude oil benchmarks ended a volatile quarter with their biggest losses in history, as both US and Brent futures were hammered throughout March on the global economic freeze due to the coronavirus pandemic and the eruption of a price war between Russia and Saudi Arabia.

Both benchmarks lost roughly two-thirds of their value in the quarter, with March’s declines of about 55% accounting for the lion’s share of the losses.

US West Texas Intermediate (WTI) crude posted a modest 2% gain on Tuesday, while Brent ended slightly lower.

Global fuel demand has been sharply cut by travel restrictions due to the coronavirus pandemic. Forecasters at major merchants and banks see demand slumping by 20% to 30% in April, and for weak consumption to linger for several months.

WTI settled 39 cents higher at $20.48 per barrel. The US benchmark plunged 54% during March and 66% for the first quarter, the biggest such declines since the contract’s inception in 1983.

May Brent crude futures ended 2 cents lower at $22.74 a barrel ahead of expiration. The international benchmark fell 66% in the first quarter and 55% in March, the biggest quarterly and monthly percentage declines on record.

The more-active June contract settled 7 cents lower at $26.35 a barrel.

Prices fell in post-settlement trade after data from industry group the American Petroleum Institute showed US crude inventories rose by 10.5 million barrels last week, far exceeding forecasts for a 4 million barrel build.

Oil drew some early buying after US President Donald Trump and Russian counterpart Vladimir Putin agreed to talks on stabilizing energy markets.

Markets have been in turmoil for more than three weeks. Early this month, prices fell sharply after Saudi Arabia and Russia were unable to come to an agreement to curb supply.

Prices fell even more as demand fell during the worsening coronavirus pandemic. More than 800,000 people have been infected and more than 39,000 have died.

It remained unclear whether Messrs. Trump and Putin’s efforts will come to fruition. Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries were unable to come to an agreement on Tuesday to meet in April. —