Forex. WTI Oil forecast for today
At the beginning of the week, a barrel of WTI oil lost almost 5% in price and fell to the level of 58.7 USD.
The drop occurred on the eve of negotiations on a nuclear deal with Iran. The countries participating in the deal plan to meet in Vienna today to discuss a possible renewal of the agreement. The market does not rule out a possible improvement in relations Iran and Western countries in the course of negotiations on the nuclear program, which could later lead to the lifting of sanctions and a significant increase in the export of Iranian oil. According to Reuters, Iran has already increased oil supplies to China, despite the sanctions.
Investors are also concerned about the record rate of coronavirus infections in India, which are probably observed due to the British strain. On Monday, the Indian Ministry of Health reported a record number of cases of infection in a day – more than 100,000. So far, only the United States has had a similar rate of infection. Fears of new restrictions on the economy of one of the world's largest oil importers turned the market, which was actively growing at the end of last week.
OPEC+ countries have decided to gradually increase oil production by 1.15 million barrels per day in three months. Against the background of this decision, oil prices went up, as the increase in oil production will be slower than expected. Nevertheless, the price increase was short-lived and quickly moved into a phase of decline.
In the forecast, I assume a further drop of WTI oil to the level of 58 US Dollars per barrel.