Financial Energy Review
Oil prices continue to show positive momentum as the oil market appears set to rebalance faster than expected. It was estimated that the market was 16 million barrel per day oversupplied in April. But by June, 4 million barrel per day in demand will come back and supply cuts of 12 milion barrel per day will move the market back to an equilibrium, although at much lower levels
This is in line with the prediction that prices of crude will surge post covid-19 as prices have continued to show some good signs this week as lockdowns are further eased around the world. Brent priced went up as it hit 8.30 percent at $35.03 per barrel.
This is also helped as producers from OPEC+ and North America signaled accelerated production cuts and/or curtailments in view of the low oil prices, high inventories, and still low oil demand around the world.
However, evidence of recovering oil demand began to emerge over the past weeks. Couple of weeks back, the Energy Information Administration reported a crude oil inventory decline of 700,000 barrels for the week to May 8—the first drop in commercial inventories in
