The price of Texas intermediate oil (WTI) opened this Monday with a rise of 10.43% to $ 32.50 a barrel, an increase motivated by the good pace of economic reopens and lower production worldwide and in The United States, where the main companies have reduced their pumping since the fall in demand for COVID-19 to balance the market.
At 9.15 New York local time (13.15 GMT), WTI futures contracts for June delivery totaled $ 3.07 from the previous session on Friday, when Texas advanced 6.8%.
The benchmark barrel in the United States rose again supported by the relaxation of the measures to contain the virus and at the same time that some parts of the country’s economic engines, such as New York or California, strengthen the partial reopening of their economies.
Furthermore, since the Organization of the Petroleum Exporting Countries (OPEC) announced an extension of the cuts already agreed at its last meeting, oil prices have stabilized in a context in which previous tensions between Saudi Arabia and Russia appear to have been decreased after the joint commitment of both powers to balance the energy markets.
At the same time, the main US oil companies have closed nearly half of their active wells and platforms as demand fell due to the pandemic and excess supply began to be incorrigible in the eyes of investors, who doubted that the capacity of storage was sufficient.
The current market situation, with WTI above $ 30 for the first time in several months, contrasts with the chaos of just a month ago, when on the day before future contracts expire for May a barrel of crude Texan traded negative for the first time in its history, with a drop of over 300%, mainly due to a lack of storage capacity.
In this sense, Axicorp’s global head of markets, Stephen Innes, said in a note that prices could continue to rise, especially if the relaxation of movement restrictions in the United States continued.
“In fact, the market is knocking on the $ 30 door, which is a significant turning point on a psychological level,” Innes said.