- Demand recover sharply in 2H20 due to the revival of economic activities
- Supply also increase due to the easing of production cut and improving refinery profit margin, but at a slower rate that consumption
- Expect a inventory draw from 2020 Q3 onwards
Weekly Oil Fundamentals - Bullish on Oil
- The reduction in the scale of OPEC production cuts put pressure on oil prices, and the epidemic situation is also suppressing optimism about the rapid recovery of crude oil demand
- US-China tension on the rise
- The US API and EIA announced that crude oil inventories fell far more than expected
- Positive on demand recovery with persistent growth of utilization rate
- Expect WTI future price to consolidate at current level
