WTI oil has reached the key resistance level of $70 per barrel. The participants of the OPEC+ deal agreed to follow the established plan for a gradual increase in oil production by 400,000 barrels per day per month. The Alliance believes that the oil shortage will continue until the end of this year, and in 2022 it will transform into an oversupply.
Many market participants believed that OPEC+ members would discuss the possibility of adjusting this plan against the background of the negative impact of the delta strain of coronavirus. However, unlike the previous protracted discussions, this time the video conference took less than an hour, and the meeting became one of the shortest in recent times. OPEC has proved that its members can meet and negotiate quickly. Probably, this understanding will still be useful in the coming years, when the alliance will have to show flexibility in responding to market changes. The decision of OPEC+ looks logical, given that oil prices have returned to pre-crisis levels, and the shortage of raw materials seems to remain until the end of the year. The decline in world oil reserves indicates a shortage, and demand continues to grow, albeit unevenly. That is why the OPEC + alliance decided to stick to the original plan.
The forecast assumes a rollback of WTI quotes to the support levels of 69.8, 69.5 and 69 dollars per barrel.