Oil quotes at the opening of this week have shown an insignificant rise. Brent crude at 10:40 EET was selling at $62.99, whilst WTI with July delivery was trading at $58.75 per barrel. At last week’s close, North Sea oil on July contracts was trading at $63.19 a barrel and the price of light crude was $58.93 per barrel.
The growth in prices could just as easily turn into a fall since there are fewer factors on the market offering support to the quotes. OPEC left the quota unchanged. This was expected, but still disappointed investors.
Chinese May imports fell by 17.6%, despite the country’s desire to fill their reserves. Since the CPR is the second largest consumer of oil in the world, a decline in oil importing there is an alarm bell for the market.
In addition to the above mentioned factors, it’s worth mentioning Iran’s nuclear problem. The agreement between Tehran and the G6 should’ve been signed by the end of May. The removal of Iranian sanctions will lead to an increase of supply on the market. The likelihood of a conclusion to the agreement is sufficiently high.
Brent could drop to $61.00 a barrel today, whilst WTI could fall to $56.60 per barrel.