Oil quotes are continuing their correction. Brent crude at 10:15 EET was selling at $65.05, whilst WTI with July delivery was trading at $59.44 per barrel. At Monday’s close, North Sea oil on July contracts was trading at $65.64 a barrel and the price of light crude with delivery in July at the close of the New York session was $59.79 per barrel.
Oil prices can’t leave the limits of the channel whilst there’s no news. A fall in the price is being held off by statistics, the lingering conflicts in the Middle East and China’s intention to increase its strategical oil reserves. Nevertheless, you can’t call the mood of market participants optimistic. According to data from 19th May, Hedge funds and other financial management companies have reduced their long positions for WTI by 7.1% and increased their short positions by 30%.
Brent is unlikely to overcome the $70 per barrel marker by the end of the month, whilst WTI is unlikely to pass $62. It’s probable that investors will wait and see what the outcome of OPEC’s meeting.
Brent will trade in the corridor of $63-68.5 a barrel this week, whilst WTI will be sat somewhere between $57.7-62 per barrel.