Owing to the return to operation in the key economies and the ongoing output cuts, Oil continues its bullish course, and its prices have already hit the highest rates in three months. Brent, Europe’s benchmark crude, rises 2.6 percent at 09 GMT and trades at a barrel of $39.3, the highest price since March 10.
The West Texas Intermediate (WTI), a US standard, gained 2.4 percent before the official opening of the market and reached $36 per barrel, a level unseen since March 6. The situation has changed drastically since last April 20, when WTI ‘s delivery price in May fell into negative territory and closed at $-37.6 per barrel. This reality, unprecedented until then, was caused by the collapse of demand due to the expansion of the coronavirus, the inadequate reduction in production at that time and the lack of storage capacity , especially in the US.
Investors are still anticipating the prospect of OPEC+-which brings OPEC members and other producer countries together-advancing next week’s meeting this week. With Saudi Arabia and Russia at the helm, the oil countries will discuss the option of extending production cuts now in place beyond June, probably until September 1.