Oil slightly higher during the day but downward pressure remains
This has been a quick check of the reality of oil prices since the conclusion of the meeting between OPEC + and other international producers, with a drop in production of 9.7 mil bpd fairly well mocked by investors at this stage.
Oil fell sharply overnight, falling to a low of $ 19.95 and remains just above the $ 20 level for the time being. As mentioned earlier, all that reducing production will do is slow the bleeding, but that won’t fix the glut of supply at hand – far from it in fact.
At the moment, oil may take to heart the fact that risky trading has fared better in the past week, but if economic concerns continue to persist, one can only be optimistic about the outlook for oil. the future.
The recovery in global demand will be the key point to watch, but if the airlines are still entrenched and the large economies are still struggling to reopen, oil will continue to remain under pressure in the coming months in any case.
The $ 20 level is the key point to watch out for right now, with a firm break below to see a significant drop in prices in the coming sessions. Vendors have struggled to get past the key level, so let’s see how it holds up now that OPEC interference is behind us.