Oil prices plunge again as storage fears persist

US oil prices tanked Tuesday as fears that global storage is running out mounted, prompting concerns that the June contract could significantly plunge in the same way the May contract did last week.

West Texas Intermediate crude futures slid as much as 21%, to $10.07 at intraday lows. The commodity pared that to a 12% decline as of 8:30 a.m. in New York. Brent crude, the international benchmark, edged higher after falling as much as 6.3%, to $18.73 per barrel.

Oil prices had recovered from historic lows in recent days, but they plummeted 30% on Monday after the United States Oil Fund, one of the biggest exchange-traded funds in oil, announced it would sell all futures contracts for delivery in June over four days.

"On oil, the front-month (June) WTI contract is coming in for the expected bashing," said Neil Wilson, the chief market analyst at Markets.com. "Prices plunged Monday and have extended losses in Asia after USO said it was dumping its June contracts, about 20% of its holdings."

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