Abstract
As of May 1, OPEC+ members officially began implementing supply limits, with several countries outside the group providing support on their own terms. While this cooperation will provide much needed support to the market, demand-side factors continue to dominate the effects of the pandemic, with the trajectory of the recovery dwarfing the impact of the supply cuts on oil prices. Demand losses now appear to have peaked, and, while inventories are likely to build for some time to come, the fundamentals are swaying back toward a rebalancing.
