Forex. WTI Oil trading forecast for today, May 28, 2021
WTI crude oil reached a new local high of $66.7 per barrel.
Markets have fully recovered from the recent collapse associated with the likely recovery of Iranian supplies. In the second half of the week, concerns were completely offset by strong data from the United States, which may indicate a recovery in the economy and growing demand for oil.
At the same time, analysts believe that the price growth will not be active. The data was strong, but there is currently no clear trend, and this is keeping some investors from actively trading. At the same time, the expected resumption of the Tehran nuclear deal keeps oil prices from rising to a new annual high. At the moment, market participants have almost no doubts about the positive outcome of the negotiations between the United States and Iran. The main question now is how soon the negotiations will end, and how quickly the country will be able to increase production and exports. According to a number of representatives of the national oil industry, if the US sanctions are lifted, Iran will be able to fully restore production and exports to the pre-sanctions level in a matter of months. JPMorgan analysts are more restrained in their estimates. According to them, Iran will increase its supply by 500,000 barrels per day by the end of this year, and by another 500,000 by August 2022.
Signals for trading WTI Oil
In our forecast, we expect a reversal and a corrective decline in the price of WTI oil to the levels of 66.5, 66.3 and 66 Dollars per barrel.