Forex trading. WTI Oil forecast for today, May 27, 2021
WTI crude oil is trading in a narrow range around $65.8 per barrel.
On Wednesday, the US Department of Energy reported that commercial oil reserves in the country over the past week decreased by 1.7 million barrels. At the same time, analysts had expected a decline of only 1.05 million. In addition, the decline in stocks of distillates and gasoline also turned out to be stronger than the experts' forecast. Markets also continue to monitor the situation around the Iran nuclear deal, assessing the prospects for the return of additional oil supplies to the market.
The World Bank has significantly raised its forecasts for average global oil prices in 2021-2022. The forecast for the average oil price in 2021 is increased from the previous 44 to 56 Dollars per barrel, and in 2022 - from 50 to 60 Dollars. In the comments of the bank's analysts, it is noted that such prices are close to the average value for the period from 2016 to 2019. Economists expect that the gradual increase in oil demand will be facilitated by the expansion of coronavirus vaccination and demand will be met by increasing production under the OPEC+ deal. At the same time, the World Bank believes that OPEC+ countries will still have large untapped production capacity, which will limit further price increases.
Signals for trading WTI Oil
The forecast assumes an increase in the price of WTI crude oil to the levels of 66, 66.3 and 66.5 Dollars per barrel.