12.05.2020 WTI Daily Analysis

12.05.2020 WTI Daily Analysis

On Tuesday Oil futures went up with an unexpected move from Saudi Arabia that they'll be cutting production in June to help drain the global market that has been built up as the coronavirus pandemic crushed the fuel demand. U.S. West Texas Intermediate (WTI) crude (CLc1) futures were up 4.81%, or 1 dollar and 16 cents, at $25.30. Oil production will be cut by a further 1 million barrels per day (bpd) in June, said Saudi Arabia, which is down by 40% since April, and total production slashed to 7.5 million BPD. Other Gulf countries, The United Arab Emirates and Kuwait, also committed to production cuts by another 180,000 BPD in total. U.S. crude inventories rose by about 4.3 million barrels in the week to May 8, the inventories for this week are expected to rise to 4.295 Million barrels according to the forecasts by investing.com