FX.co ★ Oil rises after hitting bottom

At the moment, the trading sentiment is improving in the global oil market. Most market participants suppose that oil may hit the bottom in the near future. However, some analysts, including Chevron Corporation CEO Michael Wirth, believe that the lowest level was already reached in April. Nevertheless, everybody is sure that demand for oil will mount along with its prices. Even now, analysis of the price of oil futures contracts has proved an increasing demand for oil. Having hit the bottom, oil prices started a confident recovery. Market participants were also encouraged by the new OPEC+ pact aimed at the oil output reduction. The deal came into force on May,1. Of course, it has not brought any results yet. However, the fact that the oil producers came back to the negotiating table improved the oil market mood. It is obvious that oil prices will need a lot of time to climb to the pre-crisis levels. However, another slump will hardly occur. Gazprom Neft CEO Alexander Dyukov said that in the best-case scenario, oil prices would top $30 a barrel this summer. However, sharp growth should not be expected in the near future.