The ZEMA graph above shows this month’s Brent and WTI forward curves in comparison to last month’s forward curves, based on NYMEX average settle prices. Units are in USD/bbl.
The average NYMEX Brent forward prices for delivery until July 2017 (represented by the blue line in the graph above) has been stable at $59 USD/Bbl, while WTI (the red line) increased by $1 USD/Bbl to an average of $54 USD/Bbl for the same delivery period. Both WTI NYMEX Brent NYMEX future settlements will experience a growth by 15.38% and 11.2% respectively by November 2017.
Oil prices have been sliding for over a year since the Organization of the Petroleum Exporting Countries opted to keep production high to protect market share and bump out rivals in the U.S. and those outside the cartel. There are very few positive things to say about the future prospects for the price of crude oil at this time. The market expects the prices to stabilize and get closer to the previous level.
Data Sources: NYMEX