The oil rally moderated on Tuesday, June 22, although market sentiment remained upbeat. Brent rose 0.36% to close at a new two-year high of $74.38/bbl, while WTI marked time, ticking up 0.01% to $72.97/bbl.
Fears of a market shortage and the oil bears’ unfounded expectations about the lifting of oil sanctions against Iranian continue to stoke buying. On the other hand, a new wave of the coronavirus pandemic in a number of countries is capping further upside potential.
Prices are still on the rise this morning, albeit at a more moderate pace, with Brent up 0.27%, and WTI trading 0.12% higher, allowing it to retrace to a high of $73/bbl. Our Brent price forecast for today is in the range of $73.7-75.0/bbl.