Oil continued to head south on Monday, August 16, with prices breaking through one support level after another. On the day, Brent slid 0.74% to $69.32/bbl, and WTI dropped 0.83% to $67.13/bbl.
According to media reports, there is a risk of long-term instability in Afghanistan due to a change in the political regime, and for this reason, a number of countries intend to limit or even temporarily halt air traffic to/from Afghanistan, a move that could lead to a decrease in demand for jet fuel and put downward pressure on oil prices. The closest support level for Brent is currently at $68/bbl. However, if other negativity compounds the mayhem in Afghanistan, for example, the spread of a new wave of the Covid pandemic, Brent could slide to $64/bbl.
Oil prices remain on a downward trajectory today, with Brent off 1%, and WTI down over 1%. Our Brent price forecast for today is in the range of $68-69/bbl.