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Oil, on an uptrend on Thursday

by Bunkerist
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Oil rose further on Thursday, following sharp losses from the previous session.

With official data showing that US stocks broke the most record, WTI fell to its lowest level since February 2002, and Brent fell more than 6% on Wednesday.

Brent crude LCOc1 was up 25 cents, or 0.9%, at $27.94 a barrel by 0643 GMT. West Texas Intermediate (WTI) was up 14 cents, or 0.7%, at $20.01.

Due to concerns about the collapse of the demand, both contracts maintained their earnings in the early hours of the session with a 2.5% higher trading volume than Wednesday.

US refined fuel stocks are at their lowest since September 2008 in accordance with refinery performance operating 69% of capacity across the country.

The enormous storage performance of the USA is predicted to benefit the production cut of, and the process may effectively cut the supply of raw and finished products that should also support the price.

Overall, global oil demand is expected to fall to the 25-year low in April compared to the previous year and 30% below the 25-year low.

The projected loss of demand is far greater than supply cuts agreed by the producer countries. Allied producers, including the Organization of Petroleum Exporting Countries (OPEC) and OPEC +, Russia agreed to cut production by 9.7 million bpd. Production may be reduced by 20 million bpd in the hope that other countries, including the US, cut another 10 million bpd.

The fear is that the production cuts might be insufficient to balance the market and further lower prices. In this case, further cuts will be required to prevent another collapse in oil prices.

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