Things are beginning to open, slowly but surely. And this is a phenomenon encompassing almost the entire world — from North America to Europe and South Asia including Pakistan. Consequent to this, demand has begun to rise somewhat. This is happening at a point in time when global supplies are beginning to feel the pinch of the unprecedented, coordinated output cuts. This would help put a floor beneath the crude prices. Some analysts though have not yet, given up on the possibility of WTI going below zero, sometime soon. In the meantime, we are getting into a phase of volatility, as indicated by markets strengthening early Thursday and then sliding back.
To bring out one’s crystal ball and peep into the future is virtually impossible at this stage. Too many variables are at play. The shape of the post-pandemic ‘crude world’ is still in the process of being shaped. Yet outlines are beginning to emerge.
Until three months ago, the oil industry was looking at aviation and petrochemicals for continued growth in oil demand for another decade or two, writes Tsvetana Paraskova. The pandemic has altered everything. The aviation industry has been dealt a near-deadly blow, upending all plans for fleet utilisation for years to come.
The pandemic could speed up the arrival of peak oil demand, says Paraskova, indicating the expected growth in global jet fuel demand through 2040, now may not occur. Already, airlines are cutting operations dramatically and are not expected to resume normal operations any time soon. Rystad Energy sees jet fuel demand plunging by 33.6 percent in 2020 – a fall of at least 2.4 million barrels per day from last year’s 7.2m bpd.
INTRADAY LEVEL FOR 11/05/2020
RESISTANCE 1 – 1883
RESISTANCE 2 – 1907
RESISTANCE 3 – 1935
SUPPORT 1 – 1775
SUPPORT 2 – 1750
SUPPORT 3 – 1726
ProCapitas Market-Pro Team