The price of a barrel of Brent oil for June delivery today changed the downward trend of recent days and ended in the London futures market at $ 20.49, 2.60% more than at the end of the previous session.
North Sea crude, a benchmark in Europe, ended the day on the International Exchange Futures with an increase of $ 0.52 compared to the last trade, when it closed at $ 19.97.
Analysts attribute part of today’s rise in the oil market to the announcement that the US commodity index S&P GSCI will abandon WTI futures contracts maturing in June ahead of schedule and move to contracts in later months.
“Fund managers exposed to WTI (Texas Intermediate Oil) are afraid the June contract will sink as we get closer to maturity,” said David Madden, analyst at CMC Markets.
Last week, the US benchmark barrel closed negative for the first time in its history, hours before May contracts expired.
Oil prices have plummeted in recent weeks due to declining demand due to the global crisis of COVID-19 and difficulties in storing surplus production, especially in the United States.
The firm Capital Economics predicts that the prices of both Brent and WTI “will continue at low levels in the coming months”, although it considers that the US barrel may be the most affected.
WTI contracts require “physical delivery” at the Cushing, Oklahoma, storage facility, the capacity of which is nearing its limit, while Brent contracts include a “cash settlement” option that does not require delivery physical, so the pressure on the system is less.