Brent Crude Prices Rebound as Global Supply and Demand Started to Realign

Oil Price Rises Above $31 as Demand Gradually Increases

Oil Price Rises Above $31 as Demand Gradually Increases

U.S. benchmark West Texas Intermediate (WTI) was down 2.95 percent to $24.01 a barrel in morning trade. The global worldwide benchmark notched a weekly gain of 17.1 percent.

Both contracts posted the second week of gains, with Brent jumping 18% and WTI up about 33%.

The number of United States rigs drilling for oil fell to a level not seen since before the shale-oil revolution kicked off at the beginning of the last decade.

Analysts said traders were locking in profits on Monday, causing prices to fall.

In March, the kingdom had slashed its prices by as much as $6-$7 per barrel for oil exported to the USA and Asia, leading to a slump in the market.

Analysts, however, expect the decline to be limited.

Based Vista Equity Partners to invest Rs 11367 crore in Reliance Jio
Smith and Brian Sheth , it has almost two decades of expertise in the field and is anchored by a sizable long-term capital base. Founded in 2000 by American businessman and investor Robert F.

"Crude oil prices continue to find support from increasing supply cutbacks amid the improving macro backdrop", ANZ Bank said in a note.

The oil price war of April was kicked off when Aramco offered big discounts to customers in early March just as global demand for crude fell off a cliff on the effects of the worldwide lockdowns that hit economic activity.

On Friday, the 8th of May 2020, both USA and United Kingdom crude oil futures had rounded off the day more than 5 per cent higher, remarking their second straight weekly gains as the number of U.S. drilling rigs had fallen to a record low followed by major US oil producers' move to slash output, while an unprecedented return in risk-appetite over growing optimism on easing lockdowns had added to further bullish wing in Friday's (May 8th) crude oil market.

The Organization of the Petroleum Exporting Countries and its allies agreed to cut output by 9.7 million barrels per day for May and June, aiming to tackle a global supply glut on the back of the COVID-19 crisis. Only little-traded "super light" was cut further in a range of price increases that went from $1 per barrel for crude destined for American markets to rises upwards of $6 a barrel for crude bound for European and Mediterranean trading zones.

"Oil fundamentals are showings signs of improvement by the week".

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.