Oil quotes have seen a slight rise after yesterday’s fall. Brent crude at 11:45 EET was selling at around $62.50, whilst WTI with July delivery was trading at $57.74 per barrel. At Wednesday’s close, North Sea oil on July contracts was trading at $62.28 a barrel and the price of light crude with delivery in July at the close of the New York session was $57.54 per barrel.
Weak growth today will be the hangover effect from the falling price of the last two days. The bears are approaching the lower limit of the canal which they haven’t managed to break. Yesterday’s drop was down to Iraq announcing an increase in oil exports by 26% in June with the US announcing an increase in their oil reserves. Admittedly, today’s growth could switch into a fall after the Energy Information Agency has published their stats. According to preliminary data, by last week’s close, oil reserves in the US had increased by almost 2 million barrels.
If the forecast turns out to be correct, Brent will drop to $61.20 a barrel, whilst WTI will be down to $56 per barrel.