Oil Prices Rebound in Recent Trading, But Is the Trend Sustainable?

The commodity is expected to rebound upon the reopening of economies and production cuts, but a potential new wave of coronavirus generates caution in the market.

RIO DE JANEIRO, BRAZIL - After the chaos of crude oil in recent weeks, with futures contracts coming in at negative prices, the commodity is now experiencing a moment of relief as analysts try to understand the new global demand scenario.

On Monday, May 11th, Saudi Arabia announced it will further reduce its production in an effort to support the commodity's market price. As of June 1st, the kingdom will reduce production by one million barrels of oil per day (bpd); coupled with cuts agreed by OPEC+, this measure brings Saudi Arabia's total cut to around 4.8 million . . .

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