Oil prices have rebounded sharply from their April 2020 lows. WTI crude oil was trading close to $40 per barrel as of July 13th, driven by supply cuts by OPEC and Russia (together known as OPEC+). In addition, of course, prices are helped in big part by a gradual recovery in demand, with Covid-19 lockdowns being eased. That said, the memory of April’s negative prices driven by lack of storage capacity and insufficient oil demand is likely fresh in minds of oil speculators. If Covid-19 cases continue to climb and lockdowns are brought back, while traders and speculators will be more cautious and prices won’t likely drop to $0, we do see substantial risks over the near-term.