Forex forecast of WTI oil for today May 10, 2021
WTI oil fell back in price in the second half of last week. On Friday, the quotes fell against the background of the difficult situation with the coronavirus in India to the level of 64.75 Dollars per barrel.
Despite the drop, oil ended the week higher. A strong recovery in demand in the second half of the year, combined with good production discipline on the part of OPEC+, will lead to a significant reduction in supply and support oil prices. At the same time, the near-term demand outlook is being pressured by the difficult situation in India. The country has recorded a record daily increase in cases of coronavirus and quarantine measures are being tightened in most regions. As a result, India has already recorded a decline in demand for petroleum products, and this trend will continue.
The American company Colonial Pipeline, the largest operator of a network of pipelines for the supply of gasoline and diesel in the United States, was subjected to a hacker attack and was forced to stop the operation of part of its systems. According to Bloomberg, this may lead to interruptions in the supply of petroleum products in major cities on the east coast of the United States. The company is currently working to restore its systems and promises to minimize delays in the delivery of petroleum products to consumers. Despite this, prices may react with an increase in the first days of the new week.
WTI Oil Trading Signals
The forecast assumes an increase in the price of WTI crude oil to the levels of 65, 65.3 and 65.5 Dollars per barrel.