West Texas Intermediate (WTI), the benchmark for New York-traded crude oil prices, tumbled in the early Asia session on Monday, with prices falling more than -1%.
Meanwhile, over the weekend, the Organization of the Petroleum Exporting Countries and allies (OPEC+) agreed to gradually add more oil supplies to the market from August (400,000 b/d monthly hikes until Sep 2022) after Saudi Arabia and the United Arab Emirates resolved a dispute that was blocking the deal.”
On Thursday, the group announced that global demand for oil is expected to increase next year to around levels seen before the pandemic, about 100 million bpd, led by demand growth in the United States, China, and India.
Elsewhere, the U.S. oil rig count gained two rigs last week to 380 active units, its highest since April 2020, according to energy services firm Baker Hughes.
Technically, the price is meeting daily support at $69.50-$70.20.
The Moving Average Convergence Divergence (MACD) supports a negative signal, while the Relative Strength Index (RSI) 3-daily ‘lookback’ indicator has married up to the MACD as its slide lower.
Reassess from the $69.50-$70.20 (if reached), as we could even see the lows of $68.70-75 before any initial rebound, with $72.20 seen as a short-term cap.