20.05.2020 BRENT OIL Daily Analysis

20.05.2020 BRENT OIL Daily Analysis

BRENT OIL 34.76usd, 0.65, 0.84% , Today Brent oil is trading on 34.76usd and it went up with 0.84 percent. The gains were caused by the results that came up for WTI futures for the June contract was positive and this actually gave hope to investors. There have been also a reduction of the production of oil which actually supported the prices of oil this was when a report was released that the American Petroleum Association reported a surprise crude inventory draw of 4.8 million barrels for the week ending May 15. Investors are optimistic that production cuts implemented by OPEC+ and some American producers since May are finally making a reduction in the global oversupply and also a group of oil producers led by Saudi Arabia is working on cutting further their production of oil staring in the month of June. It seems as if things are working together for the support of oil prices as countries begin to reopen and there is going to be a need for oil to restart.