08.04.2020 WTI Daily Analysis

08.04.2020 WTI Daily Analysis

Today WTI is trading at $24.72 (+4.61%) as hopes rise that the video conference meeting being held tomorrow between members of OPEC and its allies will be successful, and Saudi Arabia and Russia will come to a favorable agreement to end the oil price war. Due to many countries being on lockdown there has been an issue of oversupply and low demand which has worried investors. At this meeting, cutting output will be one of the discussion points. Later today, there are US Crude Oil Inventories which analysts predict will be more proof of oversupply just like last week. In the week that ended on the 3rd of April, US Crude Oil inventories jumped by 11.9 million barrels.  Bjornar Tonhaugen of Rystad Energy said,  “With 28 million BPD of oversupply in the oil market in April and 21 million BPD in May, the globally coordinated production cuts that are really needed may be too large for the producers to accept; perhaps twice as large as the numbers being discussed.”