The gains logged by the oil market on Wednesday were erased as bearish sentiment was back on Thursday, August 12. Brent fell by 0.64% to $70.86/bbl, failing to hold above the local high of $71/bbl, while WTI declined 0.62% to $68.69/bbl.
Joe Biden's call for OPEC+ to boost oil production in a bid to cap prices elicited no reaction among the alliance’s participating countries. However, this news spooked the market so much that the bears began to quickly take profit after Wednesday’s gains.
As for other news, in OPEC’s Monthly Oil Market Report, which was released yesterday, the forecast for non-OPEC oil production in 2022 was raised by 1.09 mbpd to 66.94 mbpd, while the forecasts for oil demand in 2021 and 2022 remained unchanged.
Today, the decline in oil prices continues on fears of insufficient demand due to the spread of the Delta strain across the globe. As a result, Brent is down 0.5% this morning, and WTI is off 0.57%. Our Brent price forecast for today is in the range of $70-71/bbl.