Oil futures saw selling intensify on Wednesday, May 19 as Brent plunged 2.73% to $66.44/bbl, while WTI fell even harder – by 3.1% to $63.27/bbl.
The oil market took a hit after news broke that the nuclear talks between Iran and Western countries, including France, could result in a compromise being struck with Iran, and the oil market is expected to lift the oil sanctions against Iran, thus potentially ramping up crude supplies by at least 2 mbpd in 2H21. However, the negativity was offset by US crude inventories, which showed a smaller than expected weekly build of 1.32 mln bbl, while the median consensus called for at least 1.62 mln bbl.
Oil prices are correcting upward this morning after a two-day downturn, with Brent up 0.53%, and WTI trading 0.6% higher. Our Brent price forecast for today is in the range of $66.5-68/bbl.