Oil found a way up, cautious recovery is yet very fragile
The oil price seems to have definitely found its way up, after the oversupply caused the value to plummet due to the corona crisis. Thanks to production restrictions in the United States and political instability in oil-producing Iraq, the oil price climbed above $ 30 a barrel on Monday for the first time in two months.
The news that the number of oil rigs in the US has fallen for a ninth consecutive week caused a sharp upturn in oil prices on Monday. As a result, US oil production is falling to a level that was last seen more than ten years ago. In addition, oil supplies in the US storage depot Cushing declined for the first time since February. Oil production in Iraq was also interrupted by protests. This is in addition to the production limitation of oil cartel OPEC, which adds up to 10 percent of the global oil supply.
Demand for oil also shows a cautious recovery. With the peak of the corona virus outbreak in many Western countries behind us, economic activity is slowly starting up again. Airlines resume their flights to help get tourism going during the summer season. People also take their car more often to return to work, for example.
The US oil, which will be delivered in June, cost $ 31 a barrel this morning. Brent oil rose to over $ 33 a barrel.