Listen to the latest market mood for the WTI.
Expect buyers in the oil markets again today some positive news for the energy sector.
Firstly, US President Trump prompted hopes of a Saudi-Russia oil price truce with a possible 10mln-15mln bpd cut . When you consider that Saudi pumps around 12mln bpd at present that is a huge cut. This news saw US oil touch $27 a barrel. However, there is some concern about how the US President reached this number and the Kremlin denied talks took place between Saudi and Russian leadership.
Secondly, China announced on Thursday 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.
- Therefore, we can expect buyers in US oil on pullbacks today.
- Risk to this outlook: Any negative news on the proposed OPEC+ meeting that shows it will not happen will quickly send oil falling.