WTI crude oil broke the $20/bbl threshold, reflecting the market forces necessary in order to drive the market towards eventual balance through market-driven cuts, despite the OPEC++ historic agreement, per TD Securities.
Key quotes
“We expect a long road to recovery, as the large Q2 surplus will translate to a large inventory overhang which will take time to work through.”
“The market will likely still test the limits of storage as the scale of demand destruction more than offsets the immediate impact of the cuts.”
“It goes without saying that energy demand is likely fairing even worse than our broad commodity demand indicator, which has yet to improve.”
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