Black April’ has receded into the past and oil market participants are hoping that the worst is finally behind them. The IEA adopted a relatively positive stance in its latest monthly report, saying that “the outlook has improved somewhat and prices, while still far below where they were before the start of the Covid-19 crisis, have rebounded from their April lows.”
The demand outlook certainly appears to be improving, and this month also saw the start of the historically-deep Opec+ production cuts, which will mitigate the oversupply. The unfavorable operational environment has also forced swathes of production to be shut-in outside of the producers’ agreement: this month’s production is set to fall to a nine-year low of 88mn b/d according to the energy watchdog. (CONTINUED - 841 WORDS)
