US Oil Extends Rise To 2-Month High Above $ 30, As Falling Production And Hope For A Recovery In Demand Boost Values

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Crude oil prices in the United States appeared to be helping to climb to a two-month high for the commodity in electronic commerce on Sunday, largely supported by efforts to rebalance supply and supply dynamics. request that had been wiped out due to the debilitating effects of the COVID-19 pandemic.
“The risk balance has tipped up,” wrote Stephen Innes, chief global market strategist at AxiCorp, in a daily research note.

“Oil prices could show new upward momentum, especially as the easing of restrictions on mobility increases,” he wrote. “Indeed, the market is knocking on the door of the WTI at $ 30, which will be an important psychological inflection point if traders put some decent margin above this key level,” he said.
West Texas Intermediate gross for June delivery
CLM20,
+ 4.31%

was up $ 1.19, or about 4%, to $ 30.71 a barrel Sunday night in New York e-commerce. Prices on Friday registered a weekly gain of 19%, according to Dow Jones Market Data.

The June contract expires on Tuesday’s settlement and investors have been sensitive to the volatility of crude prices after the May contract marked a historic crossing into sub-zero territory on April 20.
July contract
CLN20,
+ 3.86%,
which is the most actively negotiated and which will soon be the contract for the first month
CL.1,
+ 4.31%,
climbed $ 1.13, or 3.8%, to $ 30.66 a barrel.
The two US benchmark contracts hovered around the highest levels since mid-early March, according to FactSet data.
Meanwhile, July global benchmark Brent crude
BRNN20,
+ 3.26%

gained $ 1.27, or 3.9%, to $ 33.77 a barrel, after recording a weekly increase of 4.9% on Friday.
Crude markets rebounded remarkably after slipping into unfamiliar territory last month, as the May contract plunged nearly 300% to $ 37.63 a barrel. However, actions by members of the Organization of the Petroleum Exporting Countries and other major producers to reduce oil by 9.7 million barrels a day until the end of June have helped stem an oil flood. crude that had failed to attract buyers as the savings came. to an abrupt halt to curb the spread of the worst pandemic in more than a century.
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Bullish oil investors have also become more optimistic, with Saudi Arabia announcing that it will cut another million barrels a day in June, with the United Arab Emirates and Kuwait also contributing more than their targets.
Baker Hughes data in the U.S.
BKR,
-1.71%

Friday showed that the number of active oil rigs in the US has dropped from 34 to 258 this week. The drop represents an almost 60% drop in active platforms since a recent metering peak in March, which Rystad Energy says could be the biggest drop ever.

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