24.05.202113:13 Forex Analysis & Reviews: Oil bounces back after a massive plunge last week

Tropical Storm "Ana" surprisingly drove oil prices up. Apparently, even though the US National Hurricane Center said the storm will not cause significant problems, its appearance forced the oil market to pledge a premium to oil quotes.

In fact, according to Baker Hughes, operating oil and gas drilling rigs in the US increased by two units last week, reaching a total of 455 rigs.

As for the reason why oil declined last week, market participants became concerned that Iran will increase its oil production and supply in the market, after the signing of the nuclear deal.

But experts believe that the sale that took place was exaggerated, especially since it is unlikely that Iran and US will have a full-fledged agreement. Instead, only a partial deal will be made, which will not have a tangible impact on the oil supply.

So on Monday, demand forecasts were revised for the better, also thanks to improving PMI on European countries. According to preliminary data, composite PMI in the Euro area jumped to 56.9 points in April. The data for May is expected to hit a three-year high.

All this led to Brent futures for July gaining 0.56, thereby hitting a price of $ 66.81. Futures for August increased 0.54% and reached $ 66.71.

As for WTI futures for July, a 0.58% growth was observed, so the price hit $ 63.95.

Following the results of the past week, Brent crude lost 3.3%, and WTI - 2.7%.