It’s an extremely interesting moment to be doing a Crude Oil price forecast for May 2021. On one hand we have a booming economy in the US where vaccine rollout has been swift. On the other we have more cases in countries like India and Brazil that could potentially impact the broader global economy.
Oil cartel OPEC, together with Russia and their allies, a group known as OPEC+, stuck to their plans for a gradual easing of oil production restrictions from May to July, after OPEC raised slightly its demand growth for 2021 to 6 million barrels per day. The group also expects global stocks to reach 2.95 billion barrels in July, taking them below the 2015-2019 average.
Crude Oil prices extended gains on Thursday after rising 1% the previous session, as bullish forecasts on recovering demand this summer outweighed concerns about the impact of rising COVID-19 cases in India, Japan and Brazil.
Investors focused on a ramp-up in U.S. refinery operating rates and drawdown in distillates stocks last week, in data released by the Energy Information Administration on Wednesday.
U.S. crude inventories rose by 90,000 barrels last week, much smaller than analysts’ forecasts for a 659,000-barrel build.
Watch our full WTI crude oil price analysis to see where this current tendency may lead us in the weeks to come and how the crude oil price will continue to develop. And drop us a line in the comment section below with your thoughts on our WTI crude oil forecast.
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