Oil rallied once again on bullish crude consu
Oil prices have rallied significantly, rising $10 in two weeks as markets are increasingly convinced that global demand for crude is picking up once again.
Deep output cuts and the reopening of some of the largest economies in the world have brightened the outlook for oil, but many analysts are now beginning to question whether this rally isn’t already overdone. So why are oil prices still rocketing as analysts warn of ballooning inventories and continued weak demand for aviation fuel?
Looking at the data, the first signs of real demand recovery are coming from the Far East, where Chinese refiners have embarked on a buying spree, capitalizing on ultra-low crude prices in heavy hit markets such as Brazil, Oman, and West Africa.
Spurred by Beijing’s call to action, factories and farmers are leading the demand recovery in diesel according to Liu Yuntao, an analyst working with Energy Aspects in London.
But it’s not just diesel. Gasoline consumption is also on the rise in China, where rush hour traffic in Beijing, Shanghai, and tens of other big cities is approaching normal levels once again as the Chinese are finding out that coronavirus isn’t spread by driving your car.
Source: Are Oil Prices Rising Too High Too Soon? | OilPrice.com
Record deal to cut oil output ends price war – BBC News
Opec producers and allies have agreed a record oil deal that will slash global output by about 10% after a slump in demand caused by coronavirus lockdowns.
The deal, agreed on Sunday via video conference, is the largest cut in oil production ever to have been agreed.
Opec+, made up of oil producers and allies including Russia, announced plans for the deal on 9 April, but Mexico resisted the cuts.
Opec has yet to announce the deal, but individual nations have confirmed it.
The only detail to have been confirmed so far is that 9.7 million barrels per day will be cut by Opec oil producers and allies.
Source: Record deal to cut oil output ends price war – BBC News
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Overly Bullish Hedge Funds Set The Stage For Oil Price Drop | OilPrice.com
Hedge fund managers have gotten more and more bullish on crude oil futures, and now most short positions have been closed, setting the scene for a pause in the oil rally
Source: Overly Bullish Hedge Funds Set The Stage For Oil Price Drop | OilPrice.com
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Oil Market: OPEC output rises, US sanctions on Iranian oil in focus
Oil prices dipped on Friday on hopes that producer club OPECwill soon raise output to make up for a decline in exports from Iran following a tightening of sanctions on Tehran by the United States.
Brent crude futures were at $74.16 per barrel at 0223 GMT, down 19 cents, or 0.3 percent, from their last close.
U.S. West Texas Intermediate (WTI) crude futures were at $64.83 per barrel, down 38 cents, or 0.6 percent, from their previous settleme
Source: Oil Market: OPEC output rises, US sanctions on Iranian oil in focus
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Oil prices spike more than 3% on reports that US will end waivers for Iran sanctions
Oil prices surged by more than 3 percent on Monday past highs not seen since November 2018, after reports that Washington is set to announce that all buyers of Iranian oil will have to end imports, or be subject to U.S. sanctions.
Source: Oil prices spike more than 3% on reports that US will end waivers for Iran sanctions
