Forex. WTI oil trading forecast and signal for today, April 26
WTI crude oil slightly strengthened in the price at the end of last week to the level of $61.85 per barrel.
Macroeconomic data from the United States and Europe beat analysts' forecasts and supported the recovery in energy demand. Sales of new buildings in the United States in March jumped by 20.7%, and the composite index of business activity in the industry of 19 Euro zone countries, according to preliminary estimates, unexpectedly rose to 53.7 points in April, with a forecast of a decline to 52.8. Strong data supported risk sentiment and optimism about oil demand. At the same time, the situation with coronavirus in Japan and India, which are among the world leaders in oil imports, and fears of new lockdowns affected expectations of a decline in demand for raw materials.
While the situation in India continues to put negative pressure on oil prices, the news from Libya about the reduction in production, on the contrary, provided some support to world prices. According to the Libyan National Oil Company, production in the country has already decreased from 1.3 to 1 million barrels per day. At the same time, due to the budget dispute between the key oil producer and the Central Bank, the decline in production may accelerate in the near future. Recall that in the middle of last week, a subsidiary of the Libyan monopoly issued a statement that, as a result of the difficult financial situation, it could not support the volume of oil production and could completely suspend production.
WTI Oil Trading Signals
The forecast assumes the strengthening of the WTI oil price to the levels of 62, 62.3 and 62.5 Dollars per barrel.