So many producing countries are facing such large revenue shortfalls that the urge to cheat on the new deal won't be an urge but a necessity.
From Reuters' John Kemp:
Hedge funds and other money managers bought petroleum derivatives last week in the cautious hope the industry may have passed the worst point of the coronavirus-induced lockdowns.....MUCH MORE
Money managers purchased the equivalent of 41 million barrels in the six most important petroleum futures and options contracts in the week ending on April 28, exchange and regulatory records showed.
Purchases were down from 122 million barrels the previous week, but funds have now been buyers for five weeks running, with total purchases reaching 246 million barrels.
Repeating the pattern of previous weeks, last week’s buying was concentrated in crude (+41 million barrels) with an orientation towards U.S. light sweet crude (known as WTI) (+32 million) rather than Brent (+9 million).
There are no significant adjustments in U.S. gasoline, U.S. diesel and European gasoil, according to published position records (tmsnrt.rs/2YvN6zN).
Portfolio managers have purchased 222 million barrels of U.S. light sweet crude futures and options on NYMEX and ICE since March 3.
Funds’ bullish long positions outnumber bearish short ones in WTI by more than 5:1, up from a ratio of less than 2:1 at the start of March....
WTI up 14 cents at $19.92; Brent down a nickel at $26.39.
