Forex. WTI Crude Oil trading forecast and signals for today, April 21
The price of WTI fell to the support level of $62.5 per barrel.
Pressure on the value of the asset is exerted by a general decline in risk sentiment and a fall in stock markets. At the same time, on Tuesday afternoon, prices rose by more than 1%, rising to the highest value since mid-March. The prices were supported by a report from the Bloomberg news agency, according to which OPEC+ is discussing the possibility of holding only a meeting of the monitoring committee on April 28, without a general meeting, at which some adjustments could be made to the terms of production restrictions.
The strong growth in oil prices of WTI and Brent observed in the 1st quarter of 2021 was supported by a number of factors, including the preservation of OPEC+ increased quotas for production cuts, the provision of a $1.9 trillion stimulus package to the US economy, and positive indicators for the Chinese economy. Nevertheless, it is likely that the momentum of price growth with the support of these factors is exhausted. The oil demand situation is still fragile, and vaccination problems in Europe and developing countries are at least limiting the recovery. In the coming quarter, oil prices may come under pressure again, as global supplies may rise and shift the market from a supply deficit to a surplus. In particular, oil production in the United States is recovering after a sharp drop in February. Iran has been increasing its supply of raw materials since the end of last year, ignoring US sanctions. More oil supplies are expected after OPEC + ministers agreed on April 1 to gradually ease production cuts of more than 2 million barrels per day from May to July.
WTI Crude Oil Trading Signals
In the forecast, WTI crude oil is expected to decline further to the levels of 62.30, 62 and 61.75 US Dollars per barrel.