Forex forecast for today. Oil trading will remain volatile
WTI crude oil was almost unchanged at the end of the trading day on Wednesday, although market volatility remained as high as possible. The quotes are still in the area of the level of 59.6 US Dollars (USD) per barrel.
Commercial oil reserves fell by 3.52 million barrels last week, according to the US Department of Energy. At the same time, analysts polled by the Bloomberg agency expected a decrease in inventories by 2 million barrels. It is expected that oil trading will remain volatile, both on the background of negotiations on the Iranian nuclear program, and due to the increase in cases of coronavirus in Europe, and the decision of OPEC+ to increase production of raw materials by 2.15 million barrels per day in the next three months. Most likely, the markets will maintain a smooth downtrend in the coming weeks.
The US nuclear program with Iran is particularly interesting for oil traders, but the market is dominated by doubts about the success of the negotiations. Reviving the nuclear deal that Donald Trump tore up in 2018 will not be a simple event, and will take at least a year. Therefore, political factors influencing the market are considered as a long-term prospect of influencing prices, rather than a short-term one.
In the trading forecast I place a signal - decline in the price of WTI crude oil to the level of 58.75 USD per barrel.