- WTI is down 131c to $62.22/Bbl, and Brent is down 96c to $65.92/Bbl
- Oil prices have weakened this morning as a wider market sell-off takes place
- The rise in bond yields has been fueled by fiscal stimulus hopes in the U.S. and a post-pandemic economic rebound that could fuel inflation. The rise in bond yields has spread to money markets as well, with investors fleeing riskier assets like stocks
- The Dollar Index (DXY) started the week in a downward trend reaching a bottom of $89.962 before sharply reversing to climb to $90.559, pressuring oil prices further
- J.P. Morgan raises crude price forecasts, notes recent rally may be overdone
- The bank lifted its 2021 Brent price forecast by $3 to $64/Bbl and its 2022 forecast by $6 to $72/Bbl
- OPEC+ discipline will likely remain strong, and a modest increase in U.S. output of 500 MBbl/d above December 2020 levels adds to the bullish outlook, according to JPM
- The bank noted that prompt futures seem to be a bit high relative to current fundamentals
- Iran threatened to end the deal with International Atomic Energy Agency to monitor nuclear activities as the U.S. pressures the country to comply with the accords
- The IAEA said Iran had denied it access for snap inspections at two sites where it later found uranium particles in June
- The pressure by Iran will likely impede any talks regarding the easing of sanctions, as the U.S. has remained adamant that they will not be the first to re-join the JCPOA
- The U.S. carried out airstrikes on Thursday evening, hitting Iran-backed militia groups in Eastern Syria, possible escalating tensions