Only a few times in OPEC+ history has production cuts happened so quickly, and while significant we believe traders are coming to the realization that this will not suffice in stabilizing oil prices. API Crude inventory numbers the other day added to downward pressure in crude futures. It should be noted that Germany announced they will be opening up their economy next week, and of course China has been slowly opening, but this will not be reflected in any data for some time. The fact of the matter is the historical demand destruction that has taken place is causing a complete fundamental collapse in the crude market.
May crude contract has technical support $20.00 flat and if this breaks in near sessions we should see a test of $19.50, where buyers have stepped in before. The first upside resistance will be $20.30 and a break of that should see a $20.50 test of resistance if traders
Don’t fade any sort of rally.