Despite the world’s oil producers agreeing to a massive cut of 9.7 million barrels per day, the oil price was unable to hold onto its initial gains as investors are still expecting there to be a global oversupply for the next few months. After a positive gap when markets opened, WTI has fallen again below $23, confirming the bearish trend seen in the first few months of 2020. Almost 70% of the recovery seen after Donald Trump’s tweet about the possibility of an agreement has been lost, confirming the maxim of “buy the rumour, sell the fact”. On a separate note, it is worth noting that Brent is once again performing better than WTI, with a growing spread between the two benchmarks.
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