09.04.2020 WTI Daily Analysis

09.04.2020 WTI Daily Analysis

Today WTI is trading at $26.44 (+5.38%) as it continues to go up due to the hope that Saudi Arabia and Russia will end the oil price war in the OPEC+ meeting being held today. Also, OPEC+ members are expected to come to a decision to cut production of oil since demand has been affected by a coronavirus. This is evident in the US Crude Oil inventories released yesterday, the forecast was 9.271 million but the actual was 15.177 million. Clearly there is oversupply since people are stuck at home due to lockdown measures implemented by the government to stop the spread of the virus, and this is not only in the US but all over the world (global decrease in oil demand). Analysts have said they expect oil producers to agree to cut at least 10 million to 15 million barrels a day, which will level out supply and demand and allow them to raise oil prices.