03.04.2020 WTI Daily Analysis

03.04.2020 WTI Daily Analysis

WTI today is trading at $21.91 it went up with $0.55 from $25.32.  This is mainly because Trump stated that he spoke with both Russia and Saudi Arabia on Wednesday and he believes that the two countries would make a deal within a few days to lower production and bring prices back up. This, however, rose hope of truce in the Saud-Russia oil price war resulting in the price to go up. He also mentioned that he will be meeting with oil executives where he is expected to discuss a range of options to help the industry because he believes the industry has been ravaged. US crude oil inventories increased by 13.8 million barrels in the week ending March 27,  the available oil storage in the U.S. and Caribbean has been leased up or filled with products in the last 10 days. Texas Railroad Commissioner Ryan Sitton tweeted, meanwhile, that some producers had been told by pipeline companies to stop producing, given the lack of physical offtake for their crude. So right now everyone is waiting for the outcome if Saudi and Russia manage to settle their differences.