WTI June futures down by about 2% currently
Oil crept just above $20 in Asia Pacific trading but since then, it has been grinding lower to just over 2% losses and touching a low of $18.07 in the past hour.
The global output cuts deal – which will take away 9.7 mil bpd from the market – will go into effect today but the fundamental outlook of the oil market remains bleak.
Supply and storage issues are the two key things that are stopping any meaningful rally, or should I say they are what is going to put a lid on any major surge in prices.
That said, some major economies are starting to reopen again but the process remains gradual. Also, any hints of a secondary virus outbreak will devastate oil optimists.
On the week, the June futures are up by a little over 9%, recovering well after having fallen to near $10 in trading on Tuesday.