Oil prices dropped on Thursday, with expectations of a rapidly decreasing demand, after three-day gains.
Brent crude LCOc1 futures fell 64 cents, or 2.3%, to $26.75 a barrel by 0732 GMT. US West Texas Intermediate (WTI) crude CLc1 futures fell 78 cents, or 3.2%, to $23.71 a barrel. Both contracts are down about 60% this year.
The outlook of oil is weak with the rapid contraction of demand and increased production. The US Senate supported a $ 2 trillion bill on Wednesday. Some of the analysts say that the oil market has gort a boost from the US stimulus rumors and they hope they are not to be groundless.
Pressure is rising as Saudi Arabia plans to ship over 10 million bpd of crude oil in May.
Oil companies and traders are trying to store unwanted raw and refined products, despite high rental costs, tanks are rapidly filling worldwide. Storage of this surplus of oil may become a logistical headache.
OPEC + has a very limited interest in this context, because they look neither willing to eliminate the current demand shock, nor to cope with it.
