The oil market has rapidly recovered from its darkest day ever. US crude topped $40 a barrel this week. That wouldn’t typically be notable — but right now, that marks an $80 leap from its unprecedented trip below zero just seven weeks ago, when it hit a low of -$40.32 a barrel on April 20. Meanwhile Brent crude, the world benchmark, has more than doubled since mid-April.
The remarkable oil recovery is being driven by hopes of a sharp rebound in the world economy from the coronavirus pandemic that crushed demand for gasoline, jet fuel and diesel.
The oil comeback also reflects enthusiasm for record-setting production cuts by OPEC, Russia and their allies, plus the sharp pullback in output from the United States, the world’s leading producer.