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Oil prices stabilize near one-month highs

Oil Prices

Oil prices stabilized today, Thursday, at the highest price in a month as the International Energy Agency (IEA) and OPEC said they have positive demand forecasts, especially as major economies have been recovering from the pandemic.

Brent crude contracts also recorded an increase of four cents to reach $66.62 per barrel, after achieving a gain of 4.6% during trading on Wednesday, closing at the highest level since mid-March.

The US West Texas Intermediate crude futures recorded a decrease of three cents to reach $63.12 a barrel, after recording an increase of 4.9% during the previous session.

Supply discipline and rebounding economies are set to give oil a chance to break out of the recent range, Goldman Sachs analysts said in a report.

“We remain positive on Brent oil forecasting US$80/bbl in 3Q21 on a near-term demand recovery and supply discipline,” they said.

The American Investment Bank said that it is about to advance a one-year forecast of the peak global transportation sector demand for oil to 2026, against the backdrop of an increase in the rate of electric vehicle production during the recent period and the economies’ efforts to get rid of carbon.

It is expected that the global demand and supply of oil will regain its balance during the second half of 2021, after the pandemic has caused the dissipation of demand during 2020.

It is noteworthy that OPEC+ launched its concerns about the increase in infection cases at the global level, and the impact of the general isolation measures on the recovery of oil demand, according to a report issued by the meeting of the Joint Technical Committee of OPEC+.

The report of the Joint Technical Committee (JTC) came, before the (OPEC+) meeting, which will be held tomorrow, Thursday, to decide on oil production policy, after a month in which oil prices fell; because of concerns about extending the general isolation measures.

Reuters quoted an informed source during the recent period that Saudi Arabia is ready to support the extension of supply cuts until June, and in particular its voluntary cuts to support prices.

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