June 2020 - Portland Fuel

Monthly Pricing - 01/06/2020

Brent crude recovered above $30/bbl in May, reaching a high of $36/bbl; a result of optimism for demand recovery as several nations began to ease lockdown measures.

GBP fell from to 1.21 against USD as Brexit issues resurfaced, with the UK and EU reaching an impasse, before recovering above 1.23 as USD weakened by month-end.

Ahead of the next OPEC+ meeting scheduled in June, Saudi Arabia and other OPEC members reportedly favour an extension of the current agreement and await Russia’s support.

Price Drivers

Supply Russia has reportedly met 8.5mbbl supply cut target. Saudi Arabia and others pledge additional cuts in June.

Demand EIA record drop in US crude stocks for first time since January. IEA predict demand will likely surpass pre-coronavirus levels.

Geo-Political USA sanctions China in response to HK security law. Russia and Saudi Arabia to coordinate production.