Futures contracts for crude oil declined on Tuesday (May 21) due to the lack of major catalysts in the market to support prices. WTI and Brent oil have been fluctuating within a $3 range this month since the sell-off from the April 2024 peak, as investors reduced the geopolitical risk premium amid easing concerns about a broader Middle East conflict.

At the close of trading on May 21, Brent oil futures fell by 54 cents (or 0.68%) to 79.26 USD/barrel. Brent oil futures lost 83 cents (or 0.99%) to 82.88 USD/barrel.

Investors are now focusing more on fundamental factors, but the lack of short-term catalysts may keep oil prices confined to a narrow range for now.

RBC forecasts that WTI oil prices will average 79.50 USD/barrel, and Brent oil prices will average 84 USD/barrel for the remainder of the year.

Production cuts by the OPEC+ alliance have established a floor for oil prices following last month's sell-off. The OPEC+ group will meet next weekend to review its production policy.

Analysts indicate that the market will increasingly focus on how OPEC+ might respond to current oil price fluctuations as the meeting approaches. The current decline in the market may not support bringing OPEC's supply back to the market.

Source: Vietstock