Oil looks to be able to see light at the end of the tunnel with all WTI futures rebounding, including June expiry. Investors’ renewed optimism, which could yet prove premature, is based on expectations that not all US tanks will have “No Vacancies”. Traders have readied themselves by increasing storage capacities as well as other specific measures to allow them to receive crude oil and avoid what happened on the 20th of April, when the WTI expiry of May finished its life in negative.
Furthermore, investors are expecting the global economy to bounce back relatively quickly and increase oil demand. These changes are unlikely to see the oil price easily rush back to $50 but should at least keep the prices $20-$30. Of course, a strong second wave of the virus could change the scenario once again, but at this stage investors are not betting on further lockdowns of economies.
