ANZ's report on commodities trade on Monday has this to say on oil - a good summary but also a good guide to what to watch for in developments ahead::
(bolding mine)
- Crude oil prices inched higher amid a broader rise in sentiment across markets after more positive news of the vaccine front.
- However, the gains were limited as concerns about demand in the shorter term remained strong.
- A rise in infections in Los Angeles has authorities considering stay-at-home orders.
- Flare ups in other states also continue.
- A warning sign of subdued demand emerged in China. Monsoonal rain there has forced Sinopec to cut refinery runs. The rains have already led to an increase in the number of tankers off the coast waiting to load.
- Investors are also concerned inventories in the US will continue to rise, exacerbated by rising US output.
- Producers are looking at re-starting previously shut oil wells after the recent rise in prices. At the same time, OPEC says it will stick with plans to ease production cuts in the second half of the year.
