Oil market is recuperating
Oil prices went up on May 26, reinforced by the new wave of market optimism. The traders believe, that producers will keep the supply low and that the demand will grow soon, as the travel restrictions are being lifted worldwide.
By 04:29 GMT WTI crude futures firmed 3.2% and reached US$34.31 per barrel. Benchmark saw no settlement, since US is closed on Memorial Day. Brent crude added almost 1.7% and reached US$36.12, developing yesterday’s gains.
The optimism on the market has been spurred by the reports on Russian oil production. The national output has dropped to 8.5 million barrels daily - its target number for this and the next month according to the OPEC+ agreement. The members of the organization are scheduled to meet in June to discuss the future strategy.
At the moment, despite recent gains, oil prices are still off 45% in 2020.
The surplus, however, might be gone soon enough. Russian energy minister Alexander Novak claimed, that the glut might be reduced by up to 12 million barrels daily in the next month or two.