Analysts said oil after losses recovered, but it could just be a “breather”.
As the Wave passes, this is stated in Telegrams-channel BIoomberg.
It is noted that the demand remains low, and the store gradually filled, thereby continuing to affect oil prices.
While West Texas Intermediate may delivery reached $37.63 per barrel. Meanwhile, Brent fell to the lowest level since 1999, $15.98.
The growth of the June contract by 19% to $13.78, analysts explain the threat of U.S. President Donald trump to destroy Iranian ships in the Persian Gulf.
“This momentum cannot be called a restoration, it’s more of a break” –says the founder, Vanda Insights Vandana Hari.
Also emphasizes that downward pressure on prices remains in force, and the sentiment demand are extremely negative in connection with quarantine measures, imposed because of the spread of coronavirus.
In addition, the supply of oil is rapidly increasing, thus affecting the American mining companies.
According to the analyst of The Economist Intelligence Unit Peter Kirana, the June contract could reach negative marks, so as to store oil will be nowhere.
“Brent does not suffer so much from filling up stores, as is transported by sea and stored on tankers”, – stated in the message.
Meanwhile, WTI is produced 500 miles from the coast. It is noted, at sea kept a record number of oil, 160 million barrels.