Oil prices plunged again on Thursday, March 25, as the market was baffled by conflicting news. As a result, Brent shed 3.63% to $61.58/bbl, and WTI slid 3.9% to $58.39/bbl, once again failing to hold above the formidable $60/bbl support level.
The ill-fated container ship Ever Given, which has blocked oil deliveries through the Suez Canal, is still stranded and has not been towed ashore, while experts differ on the timing for freeing up this vital shipping lane for Europe and the entire world, with estimates ranging from several days to several weeks. That said, the market was so spooked on Thursday by lockdowns in Europe and a possible slowdown in the recovery of global oil demand that the Suez Canal saga faded into the background.
Prices drew support this morning from news that the Yemeni Houthi rebels launched yet another attack on crude storage facilities in Saudi Arabia: in the upshot, Brent is up 2.05%, and WTI is trading 2.3% higher, but still below $60/bbl. Our Brent forecast for today is in the range of $62-63/bbl.