Upward impetus as oil market clings to hope

U.S. crude inventories rose by 10 million barrels to 510 million barrels in the week to April 24, data from industry group the API showed last night, compared with analysts’ expectations for a build of 10.6 million barrels.

So not as bad as previously thought and lower than previous weeks which has definitely given the market some upward impetus this morning.

Nigerian oil was priced at around $10 a barrel for May after deep discounts, but traders cautioned such prices may not tempt enough buyers amid the demand collapse triggered by Coronavirus.

This being said, as the US stock prediction (if correct) shows is that there is some impact from the cuts and winding down of production on the market. All they need now is some further good news about economies opening up again to create more demand and they might just survive this.

Leave a comment

Your email address will not be published. Required fields are marked *