WTI prices are still around 42% below their average prevailing levels before the June peak last year. However, prices have recovered by just under 19% since their January low despite, the fact that the oil market fundamentals have only changed marginally and the market is still oversupplied.
Five reasons
Barclays notes that there could be five key reasons for the better-than-expected rally. First off, the oil market adjusted to the low price environment faster than expected. While stock builds are still expected throughout the year, the most average quarterly stock build came in below expectations. The most recent quarterly stock build was revised down from 1.25 million barrels per day to on 0.66 million barrels.
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