A quick recap of where we are at in oil and related markets
- Saudi Arabia says it'll further its cuts to production, more than promised under the recent OPEC+ agreement - aims for output just below 7.5m b/d in June (SA had pledged an officla target of 8.5m). Would be its lowest output since 2002.
- United Arab Emirates says it'll cut by an additional 100k b/d in June.
Be wary of these extra cuts continuing, if demand does sustain a rebound the extra cuts will be short-lived.
More: on supply
- US producers are expected to reopen wells quickly once prices recover
On the demand side:
- some recovery seen as economies begin reopeing
- the timing of recovery is patchy though as economise reopen at different rates and scales
- gasoline demand in the US is gaining, fuel retailers report a small recovery (less than 10% to week end 2 May)
- Europe, some bounce in demand but lockdown release is diverse
