Investors are betting on a V-shaped recovery for economies and a similar scenario on oil demand. Moreover, they are seemingly confident that there will be space in Cushing’s oil tanks at the expiries of the contracts in the coming months. All this sounds a bit too optimistic but what we have seen is that in just three weeks the price of the June WTI contract has trebled from the bottom reached on April 20-21 at $7, when the May contract finished its life in negative. It is currently above $24 amid lower volatility in a market trying to consolidate after the brutal moves of the last few weeks.
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