Just a few weeks ago, WTI was negative and the oil world was full of doom and gloom. USD 40 id not enough for many shale drillers to cut a living but if only a few weeks suffice for the market to come back, what will the market do in some more few weeks? The short answer is – we don’t know. The only thing we know is that a short price crash, as well as a short price spike, are both meaningless. What matters for the P&L are the averages. What’s the average price for the year. And that average price for 2020 might still be rather positive for shale than anything else. The question is – is this enough for some OPEC+ producers to cut a living?
Oil rallied as stronger consumption continued to push physical markets higher, even as many countries struggle to bring the coronavirus under control.