Posted by Bearvsbull Bendia > 2020-05-18 21:03 | Report Abuse

Covid19 pandemic lead to global lockdown! Nobody expected nor predicted this from happening! It was a black swan for oil market for sure!
Indeed, for the first time in human history, we saw negative rate meaning, speculators were paying you to buy crude oil from them! Ironically, we don't hear this hedge funds got burn given how severe it was!
At last, Opec and the rest of oil producers agreed to oil cut starting May!
But what many didn't expect is that, Saudi Kuwait perhaps may be cutting more than what they have promised! And what is more surprising, US shale oil producers drastically cut their production!
So we may see increase demand as lockdowns are easing but producers taking their sweet time to replenish supply!
Hence we will see another huge upside! Remember, oil supply is like your super slow locomotive! They will take months to increase and months to reduce supply!