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Sentiment in the oil market continues to improve as restrictions are eased around the world amid ongoing supply curtailments, per ANZ Bank.

Key quotes

“Fed officials are starting to look forward, with Vice Chair Richard Clarida expecting a recovery in H2 2020. St Louis Governor James Ballard said keeping shutdowns too long will cause long-run problems. This optimism is leading the market to look towards a rebound in demand.”

“Driving activity continues to pick up in the US, Russia, and Brazil. Inventories also appear to have peaked in China, according to satellite data. This comes as supply cutbacks kick in.” 

“The threat of a quick rebound in supply is a real possibility that the market should keep an eye on.” 

“US shale producer Diamondback said it would bring back fracking crews, with WTI in the high 20s or low 30s.”