On Tuesday crude oil prices rose, boosted by hopes for a swift recovery in fuel demand as coronavirus lockdown measures are eased across the globe, but gains were capped by the spectre of persistent oversupply in the market.
Crude oil markets continue to show a lot of noise, as the inventory number was better than anticipated but at the end of the day the markets gave up gains and the WTI Crude Oil market has tried to rally during the trading session on Wednesday but gave up gains again at the fifty day EMA in both grades that I follow.
Long-time professional traders watching the near implosion of the United States Oil Fund could only watch in wonder. “It tells me people always want to make a quick buck,” said John Davi, chief investment officer and founder of Astoria Portfolio Advisors.
Saudi Arabia did not intend for United States crude oil producers to suffer, Saudi Energy Minister, Prince Abdulaziz bin Salman, said in an interview with a select group of reporters, including Energy Intelligence’s Amena Bakr.
Crude oil traders across the globe are offering cargoes far in advance as rapidly vanishing demand drives key physical crude prices to multi-decade lows, with some US oil valued at roughly $10 a barrel.
On Friday energy and precious metals rallied as India shored up its preparation to fight the coronavirus amid rising Covid-19 cases. Crude oil gained 3.89 per cent to Rs 2,057, while gold gained 0.70 per cent to Rs 40,108. Silver jumped smartly to Rs 36,069, up 2.75 per cent.
Russia will support deeper crude oil production cuts across OPEC and its partners, Foreign Minister Sergey Lavrov told media at an event in Mexico. “We support this idea,” the top diplomat said, adding that President Putin had recently discussed the coronavirus outbreak with the King of Saudi Arabia.