With the world slowly opening up for business, oil prices are up again after April’s downward spiral, when demand almost vanished in a world under lockdown.
The international benchmark Brent crude was trading at $38.94 per barrel on Wednesday, and West Texas Intermediate (WTI) was at $36.27 per barrel at the time of going to press. Brent crude hit a 21-year low and US oil futures slumped to negative for the first time as the glut overwhelmed the world’s limited storage facilities, triggering a wave of selling by traders in April. The prices have been up, supported by a gradual recovery in fuel demand, as the global economy began to reopen.
“Dated Brent Prices may find pockets of support in June in the range of $35-40/bbl as supply shut-ins peak, demand recovers, and OPEC+ maintains discipline at their June 10 meeting,” S&P Global Platts Analytics wrote in a report.
