Forex forecast and signals for Oil WTI for 3 of May, 2021
WTI Crude Oil declined in price to the support of $63.3 per barrel.
The downward movement was caused by an adjustment after a three-day rally. The price of futures rose by an average of 4-5% over the previous three trading sessions, following the previously published data on commercial reserves and oil production in the United States. Earlier, the OPEC+ ministerial monitoring committee, following the meeting, recommended that the alliance maintain the current quotas for limiting production for May–July. And it was also reported that the OPEC+ technical committee raised its forecast for global oil demand growth to 6 million barrels per day on average in 2021 from the March estimate of 5.6 million.
Despite Friday's rebound, global market sentiment remains upbeat. Traders are not limited to the current weakening of demand in India and expect that in the second half of the year, demand will increase sharply, and stocks will shrink further. At the same time, a positive factor for the oil market in May may be the continuation of instability in the Middle East and North Africa. At the same time, it is possible that quite different news may come from the region, for example, that the United States and Iran have resumed negotiations on a nuclear deal. The current head of the United States, Joe Biden, served as vice president under Barack Obama, who managed to get concessions from Iran on the nuclear program. Biden will try to repeat the foreign policy success of Obama, which gives rise to speculation about the imminent lifting of the US oil embargo against Iran.
WTI Oil trading signals for today
In the forecast, WTI oil growth is expected to recover to the levels of 63.6, 63.8 and 64 Dollars per barrel.