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Oil prices have rebounded from their falls earlier this week, but that return may be just a breath of air before returning back to negative territory. An analyst warns about this. The main reason for this is the current problems with weak market demand and the small remaining storage space for raw material reserves.
On Monday, the United States oil WTI fell below $ 0 for the first time in history and was trading at $ 37.63 a barrel. This means that producers are paying merchants to get rid of this amount of oil. The Brent variety reached its lowest value since 1999 at $ 15.98 per barrel.
“I wouldn’t even call it a recovery. I think oil prices are just awesome,” says Vandana Hari, who co-founded energy-related analytics firm Vanda Insights.
“The pressure on oil prices remains enormous. What led to this week’s dramatic drop is demand expectations, which remain very negative due to the ongoing blockade,” he added, cited by CNBC.
During Friday’s trade, prices rose after producers such as Kuwait confirmed that they would limit production and the United States adopted a new stimulus package to support its economy.
The Brent variety added $ 1.07, or 5%, to $ 22.40 a barrel, after increasing another 5% on Thursday. The price of US crude oil rose nearly 7%, or $ 1.12, to $ 17.62 per barrel.
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