(Bloomberg) — Oil held near a two-month high of $35 a barrel as supply curbs tighten the market and demand rebounds in the world’s largest consuming countries.Prices for oil cargoes from Russia to Brazil have surged as fuel demand has recovered. Indian fuel sales have jumped in the first half of May and Chinese consumption has all but returned to where it was before the coronavirus outbreak. South Africa’s biggest oil refinery restarted operations as the country eases coronavirus-lockdown measures.Tuesday also marks the expiry of the June West Texas Intermediate futures contract. While prices plunged at the end of the May contract’s trading period, oil has since staged a stellar recovery as producers embarked on deeper-than-expected output cuts. In a sign that the market is finding a new equilibrium, the premium traders pay for bearish put options versus bullish calls fell to the lowest since early March.On the supply side, shale oil output from the U.S., the world’s biggest producer, is forecast to fall to the lowest since late 2018 next month, according to the Energy Information Administration. There’s also been a “stunning reversal” in OPEC+ shipments so far in May, data intelligence firm Kpler said, after the alliance’s deal to curb production kicked in at the beginning of the month.“There’s a lot of optimism baked in here,” said Paul Horsnell, head of commodities research at Standard Chartered. “The market has balanced by supply coming off faster than expected.”The prospects of a rebound in consumption were buoyed on Monday after American biotechnology company Moderna Inc. said its vaccine showed signs it can create an immune-system response to the virus. Italians were allowed to go back to restaurants and New York is set to open a sixth region as some of the hardest-hit areas in Europe and North America move ahead with restarting their economies.As the recovery gets underway, the nearest corners of the oil market are tightening sharply. WTI’s closest contract settled above the next month on Monday for the first time since January, a sign that concerns over a glut have eased.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

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Top news and what to watch in the markets on Tuesday, May 19, 2020.

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Tesla’s (TSLA) car registrations in China plummeted 64% in April, compared to March, according to consultancy firm LMC Automotive’s data.Specifically, the electric-vehicle maker’s China registrations dropped to 4,633 units from 12,709 units the previous month. This includes imported cars. “Tesla’s sales in the first month of each quarter are usually lower than the remaining two months” points out Reuters.Meanwhile sales of Tesla’s Model 3 sedan in China plunged 64% in April vs March, according to the China Passenger Car Association (CPCA). Tesla sold 3,635 Model 3 cars in April, a significant decrease from the 10,160 vehicles sold in March.Commenting on the stock after a meeting with Tesla’s investor relations, Emmanuel Rosner at Deutsche Bank, kept to his Hold rating with a $850 price target, despite saying that the company’s message was positive.“While management provided few details about its 2Q/2020 outlook, it believes Fremont production can ramp back up very quickly given its experience in China and that the supply chain is already coming back online,” Rosner told investors.Indeed, for the second quarter, Morgan Stanley analyst Adam Jonas is forecasting a 2Q delivery drop of 13% Q/Q (19% Y/Y) and free cash burn of $2.7bn. He is also sticking to the sidelines, arguing that with Tesla’s stock trading at 13x projected 2025 EV/EBITDA there are likely better ways to invest in tech right now.Overall, the Hold consensus is based on 9 Sells, 9 Holds, and 8 Buys. Following the stock’s jaw-dropping 94% YTD rally the $604 average price target projects 26% downside potential in the shares in the next 12 months. (See Tesla’s stock analysis on TipRanks).Related News: Uber’s Latest Takeover Offer Said To be Rejected By GrubHub Tesla Gets County Nod To Reopen California Auto Plant – Report Saudi Arabia’s Sovereign Fund Snaps Up $7.7B Of US Stocks, Including Boeing and Facebook More recent articles from Smarter Analyst: * Novavax Seeks To Raise $250 Million From Share Sale; Top Analyst Bumps Up PT * Baidu Pops 8% After-Hours On Strong Earnings Beat * Amazon Is Said To Be In Talks To Buy Bankrupt J.C. Penney * Starbucks Back To Business In Japan Today

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