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The Relentless Oil Price Rally


Oil prices are continuously rising despite the uncertainty surrounding COVID-19, with WTI nearing a two-month high on Friday morning

Friday, May 15th, 2020

Oil prices appear to be rising relentlessly, with WTI bouncing above $28 per barrel, nearly at a two-month high. Market sentiment has been gaining steam as supply shut-ins mount and demand begins to come back. Still, the risk of another wave of coronavirus infections presents a major risk to the rally.

OPEC+ could keep cuts beyond June. “The ministers want to keep the same oil production cuts now which are about 10 million bpd, after June. They don’t want to reduce the size of the cuts. This is the basic scenario that’s being discussed now,” one OPEC+ source told Reuters.

Analysts see optimism in data. Oil time spreads have seen a narrowing contango, a sign of tightening in the oil market. “We believe stocks will be reduced gradually over the next 12 months or so,” said Rystad Energy head of oil markets Bjornar Tonhaugen. “Brent stabilizing above $30 gives the market confidence that frightening days of negative prices and record daily declines are behind us.”

Saudi oil “flotilla” delayed at ports. The flotilla of Saudi supertankers heading to U.S. ports have been delayed because there has been a shortage of the smaller ships used to lighten the load near shore.

The glut is overwhelming.

LMAO!... Almostthere... seems more like you have a long way to go my firend... ;}

$RIG