Oil prices fell overnight as the International Energy Agency lowered forecasts for global consumption. The main cause is the rapid outbreak of the Delta virus, which has spread throughout the world.
Brent crude oil drops 0.50%, or $70.80 per barrel, while WTI crude oil is down 0.52%, or $68.55 per barrel.
The spread of people infected with the COVID-19 virus throughout China caused oil prices to fall further. Many places are facing lockdown. This includes the closure of two of the busiest ports.
The relative strength index (RSI) returned to the middle as it is oversold. The technical picture swings back to negative for both contracts.
Brent crude failed to clear the resistance hurdle at $72.00. Whereas now the danger is to break through the support level at $70.70. If the support level does not hold, Brent crude oil lurches towards support at $70.50.
With the WTI it does not look better. The WTI has been thwarted at the hurdle of $70.00 and falls towards support at $68.50.
A strengthening dollar and the breakout of the delta variant make the oil price visibly volatile. If the picture in Asia darkens even further, the oil price faces stormy weeks.
The Spot Market is Closed
Sat. 14 Aug- 2021