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Oil closed slightly higher this Friday, a dantesque week for the energy market, marked by the drop in prices to negative terrain on Monday and a growing problem of crude storage.
In New York, the market reference WTI barrel for June delivery closed up 2.7% at $ 16.94. In London, North Sea Brent crude for June delivery rose 0.51% to $ 21.44.
Read: (205 new positive cases of coronavirus in Colombia)
This is the third consecutive rise after the rampage at the beginning of a week that ended with Brent falling 24% over the closing of the previous Friday, and WTI down 32% over its value of seven days ago. WTI for May delivery ended Monday at -37.63 dollars, with investors paying buyers to keep physical oil at the end of the May contract on Tuesday..
“US producers must now find solutions to quickly reduce their supply as demand remains very weak and the remaining storage spaces fill up very quickly.”, observed Christin Redmond of Schneider Electric.
(See on the interactive map the state of the coronavirus in Colombia)
Waiting to see production drop, some market players are looking for “creative solutions” to manage their reserves, such as the pipeline specialist Energy Transfer “that explores the possibility of storing crude oil in its tubes,” Redmond said.
(See the interactive map of the spread of the Coronavirus around the world)
For Matt Weller, of Gain Capital, one of the unknowns to be solved next week will be “know what will happen to the freighters full of Saudi oil en route to the United States with 40 million barrels”. The difficult moment the oil market is going through “it is far from its end”, estimated Eugen Weinber, of Commerzbank, at a time of oversupply and demand in free fall due to the economic paralysis linked to the fight against the coronavirus.
