Oil market players piled back into oil futures again on Friday, March 26, with the gains driven by fears that the blockage of 27 oil tankers in the Suez Canal could lead to a shortage of oil. As a result, Brent soared 4.4%, to $64.29/bbl, while WTI surged 4.1% to $60.78/bbl.
Over the weekend, the media wired that container ship Ever Given, stuck in the Suez Canal, was dislodged by the Egyptian emergency services, making it possible to partially restore navigation along the waterway perhaps over the next days. Oil shortage fears faded by Monday morning, whereas Friday’s Baker Hughes report that unveiled an increase by six units in the number of active oil rigs stateside over the past week to 324 units shifted the market dynamic back towards oversupply fears.
The oil market currently looks devoid of direction as crude futures are again in retreat this morning, with Brent down 1.07% below $64/bbl, while WTI is off 1.4%, after failing to hold the $60/bbl level. Our Brent price forecast for today is $62.5-64/bbl.