The Energy Bulletin Weekly: 15 June 2020 - Resilience

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The Energy Bulletin Weekly: 15 June 2020 - ResilienceThe Energy Bulletin Weekly: 15 June 2020 - ResiliencePosted: 15 Jun 2020 12:00 AM PDTTom Whipple and Steve Andrews, EditorsQuotes of the Week"Losses this year will be the biggest in aviation history. There is no comparison for the dimensions of this crisis." Alexandre de Juniac, Int'l Air Transportation Assoc.'s CEO"It remains unclear if oil demand will ever return to pre-pandemic levels. From the destruction of the aviation industry to the transformation of workplace dynamics reducing daily travel and governmental pushes for renewable energy, oil demand is being attacked on all sides due to COVID-19. The oil majors seem to have recognized this global shift and are determined to make their operations as lean and sustainable as possible. 2020 is shaping up to be the most dramatic year in the history of oil markets, with a decade's worth of change seeming to be taking place in just 365 days." Charles Ke…

WTI oil appreciates to $39 as risk sentiment improves - FXStreet

  • WTI futures bounce up from $37.55 and return to $39 area.
  • Oil prices rise as bright data boosts hopes of economic recovery.
  • Crude prices are expected to consolidate over the next weeks – OCBC.

Front-month WTI futures have opened the week on a strong footing, appreciating more than 2% to reach prices beyond $39. WTI oil has taken back all the ground lost on Friday, fuelled by more positive risk sentiment, as upbeat economic data has offset fears of a second coronavirus wave.

Oil prices rise despite higher COVID-19 cases

WTI prices have bounced up from session lows at $37.54 to advance about $1.5 on the European trading session and test the $39 level during the US trading. An improved market mood, following better than expected industrial profits figures in China, has eased concerns about the global growth in coronavirus cases and increased demand for the higher-yielding oil.

Beyond that, news reports about that China has approved a coronavirus vaccine for military use have contributed to improving sentiment. On the negative side, however, the bankruptcy of the US fracking giant, Chesapeake, crushed by the decline of oil and gas prices has weighed on the overall positive market mood.

Oil prices, expected to consolidate over the next weeks – OCBC

On a bigger picture, oil prices remain consolidating below $40 after the steady recovery seen in May and, according to the commodity strategists at the OCBC Bank, this trend is expected to extend into the coming weeks, “The market appears to be balancing itself, with the high prices encouraging a supply comeback in the US. This is in addition to the high amount of oil stock around the world, notably in the US (…) We continue to maintain our view that oil may have reached its peak in the short-run and prices are likely to consolidate over the next few weeks.”



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