Oil prices corrected a tad lower on Friday, April 16, with Brent sliding 0.23% to $66.32/bbl, after having consolidated at pre-Covid levels seen in 2019, while WTI dropped 0.43%. to $63.08/bbl, also after having held steadily at pre-pandemic levels.
The key driver behind such high oil prices in the global economy, which has just begun to emerge from the pandemic, could be that the oil supply overhang on the spot market in crisis-ridden 2020 has come to an end. Notably, Citigroup predicts a drawdown in global crude oil inventories this year by 2.2 mbpd, which could push the Brent price up to $74/bbl during the second half of the year.
After choppy performance in early trading, oil prices moved resolutely north in unison, with Brent up 0.24%, and WTI trading 0.30% higher by the time of writing. Our Brent price forecast for today falls in the range of $65.8-67/bbl.