Market News & Analysis
Sentiment Struggles Amid Concerns of 2nd Wave of Infections
Fiona Cincotta May 12, 2020 4:38 PM
Whilst fears of a second wave of infections are causing some unease in the markets, oil prices are a rare source of light. Oil has jumped over 1.2% in early trade following an unexpected commitment from Saudi Arabia to cut oil production to drain some of the global oil glut. A bullish production cut of 1 million barrels per day by Saudi Arabia means that the oil producing giant has cut production by some 40% since April. The move could also go a long way to encourage other OPEC nations to comply with their cut quotas.
Whilst the cut was overshadowed in the previous session by fears of a second wave of infection, data showing that oil storage had dropped in the US’s largest oil storage at Cushing, Okla, by 2.17 million barrels offers some breathing space amid swirling storage shortage fears.
With supply now being addressed and demand slowly picking up as economies reopen, the worst appears to be behind us. API data will be in focus. Last week’s data showed a rise of 8.4 million barrels.
From time to time, GAIN Capital Australia Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.