- WTI bears lurking in bullish territory as price backs away from weekly highs.
- There are lingering negotiations with Iran and a cautious OPEC+.
Oil prices have been mixed at the start of the week. WTI spot printed a low of $70.17 before recovering into positive territory at $71.17 ending 0.5% higher on the day but still below the highest levels in more than two years.
US crude production is on the rise and Britain's delayed COVID-19 reopening has dampened expectations for fuel demand growth and tighter supplies.
''A Summer Breakout continues to play out in energy markets, as a global vaccination rollout is set to drive mobility sharply higher this summer, while OPEC's cautious plan to raise output should tighten the market with considerable deficits expected in the coming months,'' analysts at TD Securities argued.
Elsewhere, the US Energy Information Administration (EIA) forecast that shale oil output, which accounts for more than two-thirds of US production, was expected to rise by about 38,000 barrels per day (bpd) in July to about 7.8 million bpd.
"We started off strong on expectations that the demand situation was building momentum as COVID vaccinations were high," said Phil Flynn, senior analyst at Price Futures Group in Chicago. "Then the EIA report took the winds out of the sail."
The analysts at TD Securities explained that market conditions could prompt OPEC+ to ramp up the pace on the unwind of their deal.
''And, while Headline Havoc sparked some volatility late last week, as participants believed that the US was set to imminently lift sanctions on Iranian oil, the Administration's move does suggest that negotiations continue to progress towards an agreement for the Iran Nuclear Deal.
In this sense, the breakout north of $70/bbl may not be sustainable, but a Summer Breakout can continue to play out in the near-term.''
|Today last price||70.95|
|Today Daily Change||0.37|
|Today Daily Change %||0.52|
|Today daily open||70.58|
|Previous Daily High||70.93|
|Previous Daily Low||69.51|
|Previous Weekly High||70.93|
|Previous Weekly Low||68.35|
|Previous Monthly High||67.42|
|Previous Monthly Low||61.53|
|Daily Fibonacci 38.2%||70.38|
|Daily Fibonacci 61.8%||70.05|
|Daily Pivot Point S1||69.75|
|Daily Pivot Point S2||68.92|
|Daily Pivot Point S3||68.33|
|Daily Pivot Point R1||71.17|
|Daily Pivot Point R2||71.76|
|Daily Pivot Point R3||72.59|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.