Oil prices moved lower on Wednesday, September 1. Brent started trading at $71.5/bbl, and the price rose to $72.2/bbl during the morning session. The situation shifted dramatically in the afternoon. OPEC+ at its meeting, contrary to the expectations of many market participants, did not abandon the agreement reached earlier on increasing monthly oil output by 400k bpd. As a result, Brent dropped to $70.3/bbl by the start of the North American trading session.
However, from this level, the price reversed and began to win back losses. The market drew support from the weekly EIA petroleum status report, which showed a 7.2 mln bbl drawdown in crude inventories, while the median consensus called for a draw of only 3.08 mln bbl. Brent rose to $71.1/bbl by the close.
On Thursday, Brent started out with a short-lived decline to $70.7/bbl. Gains followed, and by 14:00 (GMT+3) the commodity reached $71.8/bbl. Our Brent price forecast for today is in the range of $71.1-72.4/bbl. The medium-term range for the commodity remains at $64.0-72.4/bbl. If Brent breaks out of the $72.4 resistance level, the new target will be $75.5.
As for key market data, oilfield services company Baker Hughes will come out with its weekly oil rig count tomorrow evening.