• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 12 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 days Does Toyota Know Something That We Don’t?
  • 6 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 2 days World could get rid of Putin and Russia but nobody is bold enough
  • 1 day America should go after China but it should be done in a wise way.
  • 6 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 4 days China is using Chinese Names of Cities on their Border with Russia.
  • 6 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 4 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 10 days huge-deposit-of-natural-hydrogen-gas-detected-deep-in-albanian-mine
  • 5 days Putin and Xi Bet on the Global South
  • 5 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 6 days United States LNG Exports Reach Third Place
  • 6 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Prices Set For Second Consecutive Weekly Gain

Oil prices were poised for a second weekly gain in a row early on Friday, as traders bet that the worst of the demand loss is behind us while production cuts from OPEC+ and North America will accelerate.

As of 10:36 a.m. EDT on Friday, WTI Crude was up 4.71 percent at $24.72, and Brent Crude was trading up 3.02 percent at $30.39.

Oil prices are on course to wrap up their second consecutive week of gains, following one of the worst months in the history of oil, which saw WTI Crude front-month futures plunge into negative territory to close at -$37 a barrel a day before the contract expired.

Last week was the first week in over a month in which oil prices recorded a weekly gain.

This week, the market looked at signs of demand picking up as lockdowns were eased in some U.S. states and major European economies. Inventory builds in the United States slowed down from the record-high builds reported in previous weeks, as gasoline demand began to slowly crawl up from the lows seen in mid-April.

As oil prices have gained prominence in the news cycles over the past two months because of ‘everything unprecedented’ in demand, supply, OPEC+ deals, investors and traders piled into oil-linked products. They have increased money flows into oil-centric exchange-traded products (ETPs) in the hope that oil prices will rebound, Emily Doak at Charles Schwab said in a note this week.   Related: Why This Oil Rally Won't Last

Doak, a senior research analyst covering exchange-traded funds (ETFs), cautioned investors, saying that “because a fund has dropped in value, does not mean it’s a bargain.”

“Investors should proceed with extreme caution when purchasing oil-linked ETPs. When the front-month WTI contract fell below $0 on April 20, 2020, only a few people were able to profit--primarily those with storage or transportation facilities in Cushing. For anyone not willing and able to take delivery, negative prices did not create an attractive, arbitrage opportunity,” Doak said.

After the WTI Crude futures collapsed into negative territory on April 20, some brokerages started to limit the ability of their smaller customers to place new trades in the June futures contracts of WTI and Brent Crude.  

By Tsvetana Paraskova for Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News