The price of oil dropped on Friday. On a median contract of $ 66.32, a barrel of WTI became 0.8 percent cheaper. On a weekly basis and throughout the month of May, the WTI oil price rose by more than 4 percent.
The oil price fell back on Friday after reaching its highest level since October 2018 on Thursday.
“Investors are optimistic that demand for oil will increase faster as the US economy gets on steam,” said analyst Marshall Steeves of IHS Markit. “This growth will more than compensate for the weakness in India and Southeast Asia,” the analyst thinks.
Investors are awaiting the meeting of OPEC+ next Tuesday. The market is counting on the oil cartel and its allies to decide to further relax production restrictions.
Under the current arrangements, the production of OPEC + countries will gradually increase.
There are analysts who expect oil-producing countries to change their plans because of the expected increase in Iranian oil, as Washington and Tehran negotiate a new nuclear agreement.
“There is uncertainty surrounding the negotiations that could lead to a new nuclear deal and possibly a rapid increase in [Iranian] oil exports,” says Steeves, who does not exclude an increase of 1 million barrels per day, if the talks prove successful.