WTI traders get set for OPEC

At the time of writing, WTI spot is flat at $72.81 and is trading between a low of $72.68 and a high of $72.81 in the consolidation of the offer from the prior day.

WTI spot ended the US session close to the low of $72.65 at $72.75, lower by 1.65% after falling from a high of $74.42.  WTI crude oil for August delivery closed down US$1.14 to US$72.9 per barrel August Brent crude, the global benchmark, was last seen down US$1.56 to US$74.62.

Traders are getting set for the OPEC+ meeting where the market expects to see production quotas for August raised by at least half a million barrels which would be expected at this stage despite the spike in the new strain of coronavirus. 

The majority of the related headlines have related to Australia's most populous city, Sydney, that went into lockdown and Indonesia is also battling record-high cases. Lockdowns in Malaysia are set to be extended and Thailand has also announced new restrictions in Bangkok and other provinces.

Oil might find support on the basis that the US has carried out airstrikes on militias in Iraq and Syria that are backed by Iran which could interrupt the indirect talks between the US and Iran. Therefore, the prospects for a return of a million barrels per day of Iranian supply to the world market have stalled.