Oil prices were locked and loaded and ready to explode last week as oil demand destruction seemed to be bottoming out.
Oil prices are continuing the comeback as the road to rebalancing the oversupplied market is starting to happen.
Oil is starting to flow into the SPR, which may avert a U.S. oil storage overflow and substantially reduce the risk that oil prices will crash below zero.
The oil patch shut ins have catapulted prices from the abyss back up over 50%. The reason for the incredible rebound is more signs of retrenchment in oil production, almost ensuring a time of oversupply into expected future shortages.
Oil prices are shaking off fears of oil storage overflowing.
Oil prices are trying to turn the corner, yet there is still concern about oversupply. The week starts with a bit of risk-off, and the front-month The June WTI futures contract is acting like the weakness fears are still high. .
Oil prices are defying current oversupply and instead are focused on the start of the most significant oil production cut in history.
Crude oil had a massive rally on reports that Gilead Sciences had a successful phase 3 trial of Remdesivir, a Covid-19 drug, and there are signs that oil demand destruction has bottomed out.
The front-month WTI futures contract is defying the mantra that the contract had no choice but to trade negatively again
The USO ETF is leading the exit from the July WTI futures contract. Fears that storage will top out and predictions of another assault on negative oil prices are making firms and exchanges force the hand of participants and pressure them to exit the market.