Oil prices on Friday are continuing to fall. A barrel of Brent is currently trading at $65.40 (-0.6%). A barrel of WTI now costs $60.73 (-0.8%). During today’s Asian session it was also down: the market is once again feeling the pressure of increased surplus of supply.
OPEC’s daily extraction quota is still high, thereby keeping the balance of supply and demand at the same level. Supply of oil from the cartel’s members and the US is being kept at a high level, whilst demand is nominal.
With the absence of any significant event for the market, investors are now counting on fluctuations on the currency market. First and foremost, market participants’ focus of attention for trading remains on any speculation related to US interest rates.
You can’t exclude that next week the support level ($60 for WTI and $64 for Brent) will be tested. The next meeting of the Federal Reserve is set for the middle of June. The outcome of the meeting will affect the rate of the US dollar and, ultimately, oil quotes.