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President Trump’s intent to intervene in the Saudi-Russian price war helped WTI crude oil post its largest daily gain, strategists at TD Securities apprise. WTI is being exchanged at $25.572.

Key quotes

“We suspect that price action reflects a sharp short covering rally amid severely tempered liquidity.” 

“Given weaker and weaker demand expectations and surging OPEC+ production levels, crude oil could well drop below $20/b in the not-too-distant future, as surging supply overwhelms shrinking demand and straining storage capacity.”

“Trend followers remain well positioned for the sharp decline in prices, but we also see a faint light at the end of the tunnel, as incentives are high for an eventual meeting to take place that could translate into a supply curtailment agreement.”