Oil prices are back in rally mode on Wednesday, March 3, after a short-lived downward correction during the first days of the month. At the time of writing, Brent was up 2.3% at $63.77/bbl, and WTI was trading 2.7% higher at $61/bbl.
This morning, the OPEC+ Joint Ministerial Monitoring Committee refrained from commenting on the outcome of the first day of its two-day online meeting, with a statement awaited this evening. According to media reports, wrangling has broken out among the countries participating in the agreement on the issue of raising oil production quotas effective in April.
Yesterday’s EIA report, which unveiled a record-breaking weekly build in US crude inventories (+21.56 mln bbl – a magnitude not seen since 1982) failed to move the market, likely since players expect OPEC+ to take specific action.
The Brent price could muster another attempt to break out of the $65/bbl resistance level, but without news from OPEC+ this is unlikely to happen today. Our Brent forecast for the day is in the range of $63.5-65.0/bbl.