18.05.2020 WTI Daily Analysis

18.05.2020 WTI Daily Analysis

On Monday, Oil surged by more than $1 a barrel supported by the slow demand recovery, output cuts as well as by the government inventories report. U.S. West Texas Intermediate crude (CLc1) is up to $1.43, or 4.84%, at $30.95 a barrel, the highest it has reached since March 16. For the second consecutive week, the production is falling as the U.S. energy firms cut the number of oil and natural gas rigs for an all-time low. The support also came as the U.S. Federal Reserve Chairman Jerome Powell issued an optimistic outlook for economic recovery later. "Given particularly that surprise draw that we saw on inventories last week in the U.S., it seems unlikely that those concerns about storage facilities will reassert themselves," Michael McCarthy, chief market strategist at CMC Markets in Sydney said.