A short-lived rally in oil prices gave way to a sharp decline on Friday, November 19, with Brent plunging 3.24% to $77.71/bbl, and WTI shedding 3.4% to $75.49/bbl.
Furthermore, an upturn in the number of US drilling rigs by 7 units over the past week sent a bearish signal to the market, which fears an oversupply of oil. Negativity also stemmed from White House statements that negotiations are underway not only with oil consumers, but also OPEC+ member countries with the aim of raising oil output.
Given that calls from the Biden Administration have so far fallen on deaf ears, the oil market could see more upside. Today, the Brent price is up 0.87%, closing in on $80/bbl, and WTI is 0.93% higher at $76.65. Our Brent price forecast for today is in the range of $78-80/bbl.