The price of Texas intermediate oil (WTI) opened this Friday with a 3.4% rise to $ 24.35 a barrel, due to the recovery in demand due to the relaxation of measures to contain the pandemic of the COVID-19 and the effect of cuts in the market to mitigate the surplus of crude.
At 9.16 New York local time (13.16 GMT), future WTI contracts for June delivery totaled $ 0.80 from the previous session on Thursday, when Texas fell 1.83%.
The price of US oil began the day with increases that analysts attribute both to the rebound in demand, which has occurred in recent weeks, and to the adjustments made by the main producers to correct overproduction as much as possible. of “black gold” and oversupply.
“Cuts from the Organization of the Petroleum Exporting Countries (OPEC) help, but it is the forced reductions that many producers have been forced to implement that is really saving the day,” Rystad’s oil markets analyst said in a note. Energy Louise Dickson.
North American companies have cut production to levels faster than the market expected and are on track to reduce their pumping by about 1.7 million barrels per day (bpd) by the end of June.
Dickson warned that while demand figures have improved and cuts are taking effect, “the numbers show that the adjustment in existing pumping still cannot cover lost demand, so global warehouses will continue to fill for the second part of May. ”
The problem regarding storage space played a significant role in future contracts last month, when during the last day of the contracts’ validity for May, the Texan barrel was negative for the first time in its history, which forced producers to pay investors for taking oil from their facilities.
In fact, the main delivery point in the United States, located in Cushing (Oklahoma), remains in a limit situation and for the last week stored a total of 407,000 barrels.