WTI Oil Forecast: Break over $90 to Continue Rally
Fundamental Outlook for WTI
WTI Oil has had a successful week and is on track to post its biggest weekly rise since March. Russian oil export prices have been capped, and OPEC+ has announced intentions to cut production by 2 million BPD starting in November. The OPEC+ move has raised eyebrows, especially in the US, which interprets it as backing for Russian President Vladimir Putin. As a result, there have been reports that Venezuelan sanctions may be loosened to allow oil to flow to Europe and the US.
This week’s WTI rise led numerous experts to boost their forecast for oil prices to return to $100 or more per barrel in the fourth quarter, which appeared improbable only ten days before. As a result of these events, US President Joe Biden has acknowledged that a drawdown from the country’s strategic oil reserves cannot be ruled out. As the US President anticipates the US midterm elections, it is hoped that such a release would help to moderate the recent price increase.
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