Crude oil prices advance 5% on average this Monday despite the recent cuts in expected oil demand included in the latest report of the OPEC. The organization anticipated on May 13 that it fell from the 6.8% forecast a month ago to the current 9.1%.
Investors seem to hold onto optimism and are betting on a gradual recovery of the same supported by the productive cuts that are taking place throughout the oil market.
"Oil prices can lengthen their bullish momentum as restrictions and confinements around the world relax," says expert Stephen Innes.
June futures contracts for West Texas expire on Tuesday but the market does not expect its historic collapse last month to repeat itself.
In the US, shale production is decreasing and this is also noticeable in the oil rally, which thanks him. "The particular surprise caused by lower inventories of US oil last week has calmed the concerns to some extent, " CMC Markets analysts acknowledge.
The macro also appears to support the oil rally. Jerome Powell, president of the Fed, predicted this Sunday that "we will see a firm recovery in the economy throughout the second half of this year."