21.05.2020 WTI Daily Analysis

21.05.2020 WTI Daily Analysis

Oil is heading for its longest run of daily gains in 15 months after a drop in U.S. crude stockpiles added to signs that a market that turned its end due to coronavirus lockdowns and a producer price war is rebalancing. For a second week, the American inventories fell and there was a record draw in stockpiles from the hub at Cushing, Oklahoma, Energy Information Administration data showed. Crude oil has risen more than 80% this month as production cuts have kicked in and demand has started to return. “While signs that WTI storage pressures are abating is positive for prices, the latest report shows that the fall in stocks owes more to supply factors than growing product demand. We expect this to be the story for some time yet as OPEC+ cuts help to put a floor under prices in the second half of this year.”, Capital Economics said in a note on Wednesday. U.S. West Texas Intermediate crude (CLc1) is up by $0.76, or 2.27%, at $34.25 a barrel. Since December, the U.S. crude stockpiles went down by 4.98 million barrels in the week through May 15, as the EIA data showed. The inventories at Cushing dropped by 5.59 million barrels, almost 9% U.S. crude stockpiles fell by 4.98 million barrels, the most since December, in the week through May 15, the EIA data showed. Inventories at Cushing dropped by 5.59 million barrels or almost 9%. The futures of WTI jumped up to 4.79%