During the press conference, the head of the International Energy Agency (IEA) gave a very encouraging comment on the recovery of the oil market.
“Low oil prices and a gradual economic recovery will lead to the fact that the demand for oil will not only return to the pre-crisis level, but also exceed it.”
The global level of oil demand has not yet reached a peak, and we see that prices are steadily rising. On the one hand, Saudi Arabia stimulates this process, on the other hand, a wave of bankruptcies of companies producing shale oil has begun in the USA:
- The Financial Times reported that 17 shale oil companies have already begun bankruptcy proceedings this year.
- According to Baker Hughes Co, more than two-thirds of the total number of oil rigs in the United States has been stopped since mid-March. The number of operating towers has fallen to its lowest level since July 2009. All this only confirms that production in the USA will soon fall, even if companies re-launch existing wells earlier than expected.
- According to the Commodity Futures Trading Commission (CFTC), speculators have increased the volume of net long positions on WTI American light oil for the week ending May 19.