WTI consolidates in tight channel after failing to break above $60

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  • WTI fluctuates in a narrow band above $59 on Thursday.
  • Crude oil stocks in the US fell more than expected last week.
  • Brent trades flat on the day a little below $62.

After suffering heavy losses on Monday, crude oil prices staged a technical correction but struggled to gather bullish momentum. The barrel of West Texas Intermediate (WTI) tested $60 in the previous two trading days but failed to settle above that level. As of writing, WTI was trading at $59.35, losing 0.3% on a daily basis.

The data published by the US Energy Information Administration (EIA) showed on Wednesday that crude oil stocks declined by 3.5 million barrels in the week ending April 2, compared to analysts’ estimate for a decrease of 1.4 million barrels. Nevertheless, this report had little to no impact on WTI.

On Friday, Baker Hughes’ Oil Rig Count will be the last data of the week that will be looked upon for fresh impetus by commodity trades. 

Meanwhile, Brent oil is trading virtually unchanged on a daily basis at $61.85, reflecting the neutral stance

Brent oil outlook

Capital Economic analysts have recently announced that they revised their Brent price forecast for the third quarter down to $75.

“We still expect oil prices (Brent) to peak at $75 per barrel in Q3 ($80 previously) on the back of a rebound in global demand,” analysts noted. “However, steady increases in OPEC+ production will start to clear the market deficit and we still expect prices to fall to $70 by end-2021 and $60 by end-2022.”

WTI technical levels to watch for

 

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