Listen to the latest market mood for WTI.
Expect buyers in the oil markets today on three pieces of positive news for oil that broke overnight.
Firstly, China announced that it intends to take advantage of oil prices at its historic low levels by filling up its strategic reserves. This alleviates the concerns in the oil markets that storage capacity was starting to run out.
Secondly, US President Trump has stated that he is optimistic that the Saudi’s and Russia can reach an agreement regarding oil output levels.
Thirdly, US President Trump thinks he knows how to solve the current oil price crisis between Saudi and Russia.
- Therefore, expect buyers in US oil on any pullbacks today.
- Risk to this outlook: Any negative coronavirus related news, such as a longer quarantine time, will result in oil selling.