Oil prices shot up on June 21 to levels not seen since April 2019. Brent surged 2.2%, hitting an intraday high of $74.11/bbl, while WTI also rose to a two-year high, up 2.8% to $72.96/bbl.
The hardline position voiced by Iranian authorities against the US and the official refusal of US President Joe Biden to meet with Iranian President-elect Ebrahim Raisi gave the bulls a shot in the arm, as angst over the imminent lifting of Iranian sanctions were obliterated by these statements. Furthermore, media reports that OPEC, ahead of the July OPEC+ meeting, predicts possible disruptions in oil supplies this summer, act as an additional factor driving prices upward.
This morning, crude futures reverted to a correction after yesterday’s rally, likely on the back of fears that Delta variant of Covid-19 are spreading across the world. As a result, the Brent price is off 0.43%, and WTI is down 0.72%. Our Brent price forecast for today is in the range of $73-74/bbl.