Source: Dubai – Reuters
Last month, West Texas crude fell to negative territory for the first time but rebounded, hitting its highest level in nearly two months at $ 28.75 a barrel on Friday.
“The recovery happened at a slightly faster rate than we expected,” the bank said, adding that any further recovery is unlikely to be sustainable.
“Rising oil prices may reduce production interruptions. A recovery in production may occur as summer fuel demand rises to its peak, potentially pushing forward futures prices for the month of the closest maturity down from mid-July onwards,” he said.
“We cannot rule out a second wave of the virus outbreak and more general isolation measures, while devastating consequences, still very high stocks and any small surplus in the oil market will quickly tip the delicate balance,” analysts said.