On Thursday, May 13, the rise in crude futures gave way to a sharp downturn, the likes of which had not been seen since April. As a result, Brent plunged 3% to $66.81/bbl, while WTI shed 3.07% on the day, sliding to $63.75/bbl.
The Colonial Pipeline was completely back up and running on Thursday, removing a $2-2.1/bbl speculative premium in oil prices. The IEA’s supply and demand report on the oil market in 2021 showed conflicting data: on the one hand, the report flagged a possible oil shortage by end 2021, while on the other hand, the agency is not quite confident that global demand growth by year-end will be able to significantly outstrip supply growth.
Oil prices extended losses this morning as the Brent price is down 0.33%, holding above $66/bbl, while WTI is off 0.14%, remaining above $63/bbl. Our Brent price forecast for today is in the range of $ 66.5-67.5/bbl.