06.05.2020 WTI Daily Analysis

06.05.2020 WTI Daily Analysis

Oil opened this week with an uptrend with the optimism of recovery reaching its highest for this week earlier today at $25.85 with hopes that the demand would be recovering alongside with the production cuts to upturn the prices even more. Later on today oil prices reversed course to edge down according to data from the American Petroleum Institute(API) late on Tuesday. The report showed a higher rise in U.S. inventories that rose to 8.4 million barrels, raising concerns of the oversupply of crude oil amid a coronavirus-driven slump in fuel demand. U.S. West Texas Intermediate (WTI) crude (CLc1) futures fell 31 cents, or 1.26%, to $24.25 a barrel. Per Magnus Nysveen, Rystad Energy’s head of analysis, added, “[The oil] market is still vulnerable. The existing problems did not magically get resolved, the storage constraint is still there". With an unclear path of where oil would be moving, Royal Dutch Shell (AS:RDSa) cut's its quarterly dividend to 16 cents from 47 cents per share for the first time since the Second World War. The destruction of oil demand reported in 46% loss of the company's profit said CEO Ban Van Beard.