23.04.2020 WTI Daily Analysis

23.04.2020 WTI Daily Analysis

WTI is trading at $15.01 (+8.93%) as oil prices rally due to the scheduled output cut on the 1st of May by OPEC which they agreed earlier this month. They agreed to cut output by up to 9.7 million barrels per day, however, analysts believe that they will increase the number of barrels to be cut per day due to how low the demand is. This has been deemed the worst crisis in the oil industry leaving US shale producers, refiners, and pipeline companies in heavy debt. Fuel demand went down by an estimated 30% worldwide due to the lockdowns across the world. The oil price war between Saudi Arabia and Russia flooded the markets with crude and soon after that many countries went under strict lockdowns and the oil price had no chance to recover. US crude oil inventories’ forecast for this week was 15.150 million and the actual is 15.022 million, which is good because it is less than the forecast but not good enough to affect the prices considering the impact of what happened with the May contract.