According to the results of trading on May 5, 2020 world oil prices showed a strong growth due to expectations of demand increase. Market demand recovery is forecasted as restrictions triggered by COVID-19 are lifted. Genscape also reported an increase of 1.8 million barrels (the minimum increase since mid-March, according to Bloomberg) in oil reserves at the Cushing (Oklahoma, USA) hub, which also eventually helped maintain high prices.
By Tuesday morning local time July futures on Brent rose by 3.9% ($1.06) on ICE Futures (London), June futures on WTI also rose in price by 6.03% ($1.23) on NYMEX (New York).
The optimism may also be due to opinions that demand in a number of markets has already bottomed out. Nevertheless, getting rid of oversaturation will take some time.
Sources: oilprice.com, oilgas.gov.tm
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