The Saudis led a strong compliance effort in making the OPEC+ agreement successful, especially in the month of May and June helping the price of crude to more than double, since its historical lows of about $16 in early April.
The bullish bias among a significant amount of crude oil traders got thwarted recently by the upsurge in Covid-19 cases, as concerns strengthened that economic restrictions might resume, and air travel a strong proponent of crude oil consumption might be curbed to restrict human activities.
Some crude oil traders are still having a strong bullish bias view on oil as energy demand picks up again globally.
Recent data from the world’s second-largest economy, showed its imports on crude oil recorded lower figures in the month of June, coupled with the fact that crude oil traders in major energy hubs around the world reported recently on China’s downward appetite for crude oil weakening in recent weeks.
Customs data from 27 oil major producers revealed, that the crude oil exporters loaded ~2.55 million barrels a day, or 22%, less of crude headed to China during the month of May.
However positive macros coming from the world’s second-largest economy came from its recent released Q2, 2020 GDP, which was far more impressive than anticipated, showing a favorable global economic outlook remained intact despite the recent growing concerns of the rampaging virus
This positive news will help in the mid-term alleviate growing concerns among global energy traders, on the basis that despite increased virus fears the worst seems over and energy demand won’t fall to such levels as recorded in the month of March and April.