On Monday, February 8, oil prices shrugged aside the global coronavirus crisis and spiked higher, with Brent resolutely breaking out of the $60/bbl pre-crisis resistance level, up 1.9% to $60.42/bbl, while WTI surged 1.86% to another YTD high of $57.88/bbl.
Oil is gaining on expectations of increased demand in China. In addition, foreign media report that an extraordinary OPEC meeting could be held in May, dedicated to the 60th anniversary of the oil cartel, and it is noteworthy that Iraq is spearheading this idea, Notably, it was rumored last year that Iraq could withdraw from OPEC+ and even from OPEC, since the country is unable to cope with the discipline of the cartel’s supply-cutting deal.
Crude futures continue to tick higher this morning, albeit at a slightly slower pace as Brent is up 0.43%, and WTI is trading 0.42% higher. We expect that after consolidating above $60/bbl, Brent will set a new target of $64/bbl. Our Brent forecast for today is $ 60-61/bbl.