Brent is likely to find support in June in the range of $35-40/barrel

The speed at which the oil market rebounded to $40 per barrel has certainly grabbed attention, but it needs to walk before it can run

A faster-than-expected recovery in oil demand and the decision by top oil producers to extend production cuts have given the oil market a much-needed shot in the arm. However, the sector remains bloated with oil stocks, flush with spare capacity, and replete with producers eager to pump again. A fully-fledged recovery remains premature.

OPEC and its allies, led by Russia, sent all the right signals at their latest meeting, suggesting the grouping has a handle on Covid-19-induced volatility. The pact, known as OPEC+, agreed to roll over its deep production cuts – amounting to around 10 per cent of global supply