Oil quotes on Thursday morning have been moving in all directions. Brent Crude at 11:10 EET went up to $67 and WTI with June delivery lost an insignificant part of its value, cheapening to $60 a barrel. At Wednesday’s close, the cost of North Sea oil on June contracts was $66.47 a barrel and light crude with June delivery at the close of the New York session stood at $60.07per barrel.
Over the course of the day oil prices are likely to rise. This rise is supported by statistics and a weak dollar. According to data from US Energy Information Administration (EIA), at last week’s close the oil reserves in the US had fallen by 2.1 million barrels and distillate reserves had fallen by 2.5 million. Thus, oil reserves have fallen for the second week in a row.
The dollar is continuing to cheapen on the international Forex market, thereby stimulating a growth in the price of oil.
Over the course of the day, the price of Brent will trade in the range of $66-68.50 and WTI will trade in a corridor of $59-61 a barrel.