Yesterday we saw how WTI oil prices jumped up after Donald Trump’s 2 tweets and reached the 25.30 mark. Today the WTI price went even higher and now it’s 27.32 dollars per barrel. There is definitely an upward trend, breaking through 23.6 Fibonacci level at the 26.85 mark and two lines of Moving Average, 50 and 100, respectively.
How did the oil war get started?
The Organization of Petroleum Exporting Countries met in early March and failed to agree on the amount of oil supply cut amid the coronavirus outbreak. It meant that starting April 1 all the members could pump as much oil as they want. As a result, both unlimited supply and reduced demand (because of lockdowns for many economies around the world) cause oil prices to fall dramatically.
What is the forecast for the oil market?
The OPEC+ meeting will be hold on April 6. It’s expected that Russia and Saudi Arabia will negotiate and cut oil production to raise the WTI price to nearly 30 dollars per barrel. The United States has traditionally not been a part of these kinds of meetings, but its new status as the world’s largest oil producer, coupled with its particularly expensive method of extracting oil, means that things could be about to change.