* Some countries prise open COVID-19 lockdowns
* U.S. crude stockpiles seen rising closer to record high
-poll
* BP expects oil demand to drop 15 million bpd in Q2
* Russia's Novak says storage weighing on oil prices
* Coming Up: API's US oil stock data at 4:30 p.m. ET (2030
GMT)
(Updates prices, adds commentary, U.S, oil inventory forecast;
changes byline and dateline, previous LONDON)
By Laura Sanicola
NEW YORK, April 28 (Reuters) - Oil prices fell on Tuesday
with U.S. crude leading the decline, falling about 3% as
domestic stockpiles were expected to have risen closer to record
highs amid tightening storage despite plans to cut production.
However, the markets were supported on hopes of demand
recovering as across the world, governments announced the easing
of restrictions, although Britain said its too dangerous to
relax a lockdown for fear of a deadly second outbreak. At least
16 states in the United States looked set to restart business.
Global benchmark Brent crude LCOc1 fell 4 cents, or 0.2%,
to $19.95 a barrel at 12:50 p.m. EDT (1450 GMT), following a
6.8% slide on Monday.
"While wild price swings are set to last in the very near
term, we see more upside than downside from prices around $20
per barrel. The oil price should recover in the longer term,"
said Norbert Rücker, analyst at Swiss bank Julius Baer.
U.S. West Texas Intermediate (WTI) crude CLc1 was down 43
cents, or 3.4%, at $12.35 a barrel. The contract plunged 25% on
Monday.
U.S. crude inventories were expected to have risen nearly 11
million barrels last week, their fourteenth weekly build, while
refined product stockpiles also likely rose, analysts polled by
Reuters estimated. EIA/S
In the previous week, crude inventories rose by 15 million
barrels to 518.6 million barrels, putting them within striking
distance of an all-time record of 535 million barrels set in
2017, the U.S. government said.
Globally, storage onshore was estimated to be about 85% full
as of last week, according to data from consultancy Kpler.
In a sign of the energy industry's desperation for places to
store petroleum, oil traders are resorting to hiring expensive
U.S. vessels to store gasoline or ship fuel overseas, shipping
sources said. As U.S. crude output continues to fall, shale producers are
butting heads with their service companies over the termination
of purchase agreements. Casillas Petroleum Resource Partners is
suing Continental Resources for backing out of a $200 million
oil and gas deal.
BP BP.L Chief Executive Bernard Looney told Reuters his
company expected global oil demand to drop by about 15 million
barrels per day (bpd) in the second quarter due to
coronavirus-related movement restrictions. That is more than the 10 million bpd of cuts agreed by the
Organization of the Petroleum Exporting Countries, Russia and
other allied producers. The reductions are due to be implemented
from May 1.
OPEC oil supply in April is at its highest since December
2018, a company that tracks oil shipments said, as producers
pump at will before the supply curbs takes effect. Russian Energy Minister Alexander Novak said oil markets
would start balancing out once an output deal took effect, but
no significant rise in prices was likely in the near future due
to high levels of global storage.
"Despite a frantic effort to reduce production, more output
cuts will be required in the coming weeks before a price bottom
anywhere across the complex can be considered," Jim Ritterbusch,
president of Ritterbusch and Associates in Galena, Illinois,
said in a report.
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World population under lockdown IMAGE https://reut.rs/2RDU6Gu
Cushing crude stockpiles surge IMAGE https://reut.rs/2XViQxO
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