Listen to the latest market mood for the WTI.
Once again the market is very firmly focused on COVID19 developments. This morning positive risk sentiment is supported by Governments weighing up when to ease lock down restrictions. US President Trump says the administration is very close to completing a plan to re-open the country and he will know in the next few days when he is ready to re-open the US. This positive sentiment is helping oil this AM.
If we zoom out and take a broad look at oil we can see that the current price of US oil at $22.50 is historically very cheap. Looking forward to when oil demand should recover towards the end of the year would mean that oil prices should be higher at the end of 2020 than now.
- Therefore, expect long term US oil futures buyers at market and on any drops lower looking to benefit from a long term US oil position.
- Risk to this outlook: Any fundamental change in the oil market which devalues oil longer term.