It sounds incredible but oil  is going to close the second week in a raw in progress, just few weeks ago we saw WTI (American oil) close a session at -37 Dollar just a day earlier the expiring date of the future contract, it seems that traders are betting that the worst is behind us.

This month OPEC+ countries started to cut the production  of about 9,7 million bpd (barrel per day), also this month some state in the USA and some countries in Europe star to reopen and make a first attempt to return at the normality, this could increase the demand of oil and oil related products.

According to Goldman Sachs oil demand could growth till exceed supply at the end of this month, we have to consider that there is around 1.2 billions of barrel in storage right now than this pile of oil would gone before we can see a price increase till the level we lost at the start of this pandemic shutdown.

Demands of oil is the key factor for this commodity as there is still a production of over 90 million barrel per day and we are not sure how fast the rebound would be, what we know is that also America start to accept that the world don’t need all the oil they produce as they cut 1,1 million bpd  and now the production is less than 12 million bpd.

Personally I would be careful if the WTI arrive at 30 dollar, this may be a price that can be a kind of a resistance, let’s think that in the USA the unemployment rate is just jumped at 14% and  even if some city reopen it’s still impossible fly or move far from our residence, in many state in Europe we are forced not to move outside our region and this new normal may stay for a while.