WTI gained a little at first and fell through the week by more than 6 USD.
This is due to a surprise increase in the US oil inventories, showing that the delta variant might have a huge impact in curbing the demand for oil.
At the same time, the OPEC+ has also agreed to increase the oil supply to keep oil prices from going higher.
Nevertheless, as most countries are opening up and many are determined not to go back into a full-lockdown mode, economies will continue to recover and eventually led to more travelling and lead to higher oil demand.
The oil is fundamentally strong and we see every dip in the price as an opportunity to buy at a lower price again.
The oil price is also technically supported by moving averages and it seems that the price will test the 126ma in the coming week where we will be looking for a buying opportunity.
Once the price rebounds, we expect it to reach at least 71, then followed by the previous high at 76.
This is due to a surprise increase in the US oil inventories, showing that the delta variant might have a huge impact in curbing the demand for oil.
At the same time, the OPEC+ has also agreed to increase the oil supply to keep oil prices from going higher.
Nevertheless, as most countries are opening up and many are determined not to go back into a full-lockdown mode, economies will continue to recover and eventually led to more travelling and lead to higher oil demand.
The oil is fundamentally strong and we see every dip in the price as an opportunity to buy at a lower price again.
The oil price is also technically supported by moving averages and it seems that the price will test the 126ma in the coming week where we will be looking for a buying opportunity.
Once the price rebounds, we expect it to reach at least 71, then followed by the previous high at 76.
