The significant decline in world oil consumption due to the Covid-19 pandemic has added to the turbulence on the supply front with the price war between Russia and Saudi Arabia. The price of crude oil therefore remains under pressure, with the oil surplus and global re-sale not doing any good.
Russia's call for dialogue, urging joint action between countries to regulate the market, has therefore taken second place due to the health of the US market, which is showing increasing signs of weakness.
Pipeline operators have reportedly asked US producers to voluntarily reduce production as some local sites are reaching the limit of their storage capacity. The number of active drills has already begun to fall, with an expected drop of around 10% last week alone.
Technically, in daily data, the underlying trend remains clearly downward; the picture of the direction of the various moving averages is similar. Sellers will keep their hands on the market as long as prices remain below the 20-period moving average, corresponding to the USD 30 threshold;