Crude futures were in rally mode on Wednesday, June 2, retracing to highs and continuing to trade at levels seen in pre-pandemic 2019. The Brent price advanced 1.01% to $71.1/bbl, and WTI surged 1.15% to $68.6/bbl.
Yesterday’s gains came in the wake of Tuesday’s OPEC+ ministerial meeting, which reported that the return of Iranian oil was not discussed, while the alliance member countries remained committed to the idea of returning 2 mln bpd to the market, although it is too soon to predict any specific dates. According to last night’s API report, crude oil inventories showed a 5.36 mln bbl drawdown, giving a further boost to market sentiment.
The Brent price continues to trend higher this morning, up 0.53%, while WTI is trading 0.6% higher, within striking distance of $69/bbl. Our Brent price forecast for today is in the range of $71-72/bbl.