The decline in oil prices on Thursday, March 18 turned into a collapse, with Brent plunging 7.6% on the day to $62.46/bbl, while WTI failed to hold the $60/bbl level, sliding 7.8% to $59.48.
There have been no such market crashes since autumn 2020. The downturn could be attributable to media reports that OPEC+ again faces disagreements ahead of the April ministerial meeting. Notably, some parties to the agreement fear a further increase in oil production at a time when OPEC and the IEA have forecast lackluster demand for petroleum products this year.
Oil prices are correcting upward this morning after yesterday’s collapse: Brent is currently up 1.6%, while WTI is trading 1.7% higher. We see the Brent price range-bound at $62-64/bbl until it becomes clear what is actually happening at OPEC+, and today we expect Brent to trade in the range of $63-64/bbl.