FXStreet reports that in the opinion of strategists at TD Securities, crude markets appear to be stabilizing in the low-mid $20/bbl range, but further storm clouds loom on the horizon.

“While the potential for a New Global OPEC+ would be very constructive long term, the demand-side impact of Covid would nonetheless vastly outweigh a potential curtailment agreement in the short term.”

“Gasoline crack spreads have fallen into negative territory, prompting many refineries to cut refining run rates, which could quickly see inventory levels of crude begin to surge, bringing another wave of selling into this fragile market.”

The U.S. Energy Information Administration (EIA) revealed on Wednesday that crude inventories rose by 1.623 million barrels in the week ended March 20. Economists had forecast a build of 2.774 million barrels.

At the same time, gasoline stocks declined by 1.537 million barrels, while analysts had expected a drop of 0.657 million barrels. Distillate stocks fell by 0.679 million barrels, while analysts had forecast a decrease of 1.886 million barrels.

Meanwhile, oil production in the U.S. reduced by 100,000 barrels a day to 13.000 million barrels a day.

U.S. crude oil imports averaged 6.1 million barrels per day last week, down by 422,000 thousand barrels per day from the previous week.