US crude oil claws back into positive territory but historic crash spooks investors

U.S. crude oil bounced back into positive territory on Tuesday, after a historic plunge below zero that shocked investors and pushed down stock prices and Asian currencies.

Futures for May delivery of West Texas Intermediate rose nearly $39 but were still just $1.76 a barrel, after a storage squeeze and collapsing fuel demand crushed prices to eye-popping lows.

The contract expires at the end of trade on Tuesday, which is pushing investors to clear them from their books at any price, and June prices at $22 per barrel point to some relief.

But the collapse highlighted intense disruptions globally as the coronavirus pandemic and lockdowns paralyse the world economy, and augurs badly for a swift return to growth.