Oil surged more than $ 1 on Tuesday as a result of bargaining opportunities following recent sharp declines due to the coronavirus outbreak and the price war between Saudi Arabia and Russia. However, the fear of stagnation is still on the market.
Brent crude LCOc1 reached $ 30.60, up 1.8% or 55 cents, until 0410 GMT, after reaching $ 31.25%.
West Texas Intermediate (WTI) crude CLc1 value rose 3.7% or $ 1.06 to $ 29.76.
The US says it will take the advantage of low oil prices to fill the Strategic Oil Reserve (SPR), and other countries and companies say they are also planning similar measures to fill storage tanks.
However, these storage facilities are filling up rapidly and the demand balance is gradually deteriorating. Global markets are hoping that the dispute between Saudi Arabia and Russia will be resolved before it reaches the point of no return, despite the possibility that oil prices will drop further.
The Saudis say they will keep moving the high oil production to May that has been planned for April, and the price of $ 30 a barrel is reasonable for their current financial strength.
The fact that Saudis and Russia increased production at a time when global energy demand was damaged by border controls and travel bans causes a deep, unbalanced supply and demand outlook.
Countries in the United States, Canada, Europe, and Asia are taking important steps about the virus, which seriously blocks demand for raw and refined products.
Economic disruptions caused by the spread of coronavirus and countermeasures cause global stagnation. As travel restrictions are applied and the movements are paralysed, margins of transport fuels also fall to the lowest levels in recent years or many months.