Forex trading. WTI Oil forecast for today, May 31, 2021
On Friday, WTI crude futures fell to $66.4 per barrel after five consecutive sessions of gains. At the same time, the quotes rose both in a week and a month. Friday's price decline came after Thursday's highest closing level since 2018 was reached.
Market participants are optimistic about the growth in demand with the acceleration of the US economy, which will offset the decline in India and Southeast Asia. The US economy is operating at full strength with good indicators across the board. Improvements in the labor market, housing and consumer sentiment reinforce the picture of a recovery in oil demand.
Traders are also awaiting the outcome of the OPEC+ meeting on Tuesday. The meeting will assess the conditions on the oil market and make decisions on production levels. It is possible that the alliance will confirm the increase in production, as the fundamental indicators of demand have only improved since the previous meeting of the group. The current OPEC+ agreement implies a gradual increase in production from May to July. According to an alternative scenario, the organization's management may adjust plans to ease production restrictions due to expected supplies from Iran. There remains uncertainty in the negotiations on the US - Iran nuclear deal, which could lead to an agreement and a rapid increase in oil exports to a million barrels per day. Despite the high chances of an agreement with the Islamic Republic, a scenario with a change in the current OPEC+ policy remains unlikely.
WTI Oil forecast for May 31, 2021
In the forecast, the price of WTI oil is expected to rise to the levels of 66.7, 67 and 67.5 Dollars per barrel.